The Best Way To Track Mortgage Rate Trends

If you are considering buying a home, you are probably thinking about mortgage rates. You have heard how they affect how much you can afford in monthly mortgage payments, and you want to make sure you consider that as you plan your move.

The problem is that with all of the recent headlines about interest rates, it can be difficult to sort through. Here’s a quick rundown of what you really need to know:.

The Latest on Mortgage Rates

Rates have been volatile, which means they have fluctuated a bit. And you may be wondering why. Because there are so many factors influencing rates, the answer is complicated.

Things like what’s happening in the broader economy and the job market, the current inflation rate, decisions made by the Federal Reserve, and a whole lot more have an impact. Lately, all of those factors have come into play, and it’s caused the volatility we’ve seen. As Odeta Kushi, Deputy Chief Economist at First American, explains:

“Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”

Professionals Can Help Make Sense of it All

While you could delve deeper into each of these factors to learn more about how they affect mortgage rates, it would be time-consuming. And if you are already preoccupied with moving, doing so much reading and research may seem overwhelming. Instead of wasting your time on that, rely on the professionals.

They constantly coach people on how to navigate market conditions. They will give you a quick summary of any broader trends that are up or down, what experts predict will happen in the future, and how it all affects you.

Take this chart as an example. It gives you an idea of how mortgage rates impact your monthly payment when you buy a home. Imagine being able to make a payment between $2,500 and $2,600 work for your budget (principal and interest only). The green part of the chart shows payments in that range or lower based on varying mortgage rates (see chart below):

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As you can see, even a small change in interest rates can affect the loan amount you can afford if you want to stay within your target budget.

These tools and visuals take everything that is going on and show what it means for you. Only a professional has the knowledge and experience to guide you through them.

You don’t need to be an expert on real estate or mortgage rates, you just need to have someone who is, by your side.

Bottom Line

Do you have any questions about the current housing market? Let us talk so we can figure out what is going on right now and what it means for you.

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