Preview Orange County Real Estate Blog

If you’re thinking of buying a home, here are a few things to keep in mind even as mortgage rates rise. 

The average 30-year fixed mortgage rate from Freddie Mac inched up to 3.1%, and experts project rates will continue rising through 2022: 

“The 30-year fixed-rate mortgage was 2.9% in the third quarter of 2021. We forecast mortgage rates to increase slightly through the remainder of the year and reach 3.0%, rising to 3.5% for full-year 2022.” 

Taking Time Off Can Be Costly 

Mortgage rates play a significant role in your home search.  And even the smallest increase can have a large impact on your monthly payment (see chart below): 

Instead of waiting and hoping rates will fall, today’s rates should motivate you to purchase now before rates increase more.  

Smart Buyers Can Succeed by Planning Ahead 

Plan your next steps accordingly so you’re prepared to act no matter what happens with mortgage rates. One way to do that: take rising rates into consideration as part of your budget. 

Danielle Hale, Chief Economist at realtor.com, puts it best, saying: 

“Smart buyers should consider calculating a monthly payment not only at today’s rates but also at rates that are a bit higher so that they won’t be derailed by a sudden upward move. . . ” 

You should also be ready to act when you find a home that meets your needs. That means getting pre-approved with a lender so there won’t be any delays when the time arrives. 

Bottom Line 

Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let The Aaronson Group help you to understand your budget and how you can be prepared to buy your home before rates climb higher.  Contact 949-388-5194 or email: info@previewochomes.com