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  • The Mullin Group

Are Higher Mortgage Rates Here To Stay?

Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):

That can feel like a little bit of a gut punch if you’re thinking about making a move. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.

How Higher Mortgage Rates Impact You

There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.

Urban Institute explains how this is impacting buyers and sellers right now:

When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”

Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?

Where Will Mortgage Rates Go from Here?

If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states:

“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.

The Mullin Message

Unlock the secret to a stress-free move: Embrace what's within your reach and let go of the unpredictable – like fluctuating mortgage rates. Remember, even the top experts don't hold a crystal ball on future rates. What truly matters MOST for you and your family? Assemble a dream team of trusted professionals to guide you every step of the way to achieve the lifestyle you are seeking on a daily basis. Ready to embark on this exciting journey? Let the Mullin Blankfeld Group help you figure it out. Take our FREE confidential housing needs assessment today, and let's make your dream home a reality!

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1 Comment

Harvey Blankfeld
Harvey Blankfeld
Oct 21, 2023

Great insight and advice. If a buyer is waiting for rates to drop, they need to know they aren't the only one. When rates do drop, many others will get back into the market and it may actually cause prices to go up again. If you can afford the home you want now, get it and then perhaps work on the rate later when they come down in the form of a re-finance.

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