Are you thinking you should wait for rates to drop to 4% or maybe even 3%? Then Watch this:
The Federal Reserve took action to try and lower inflation last year. Mortgage rates quickly increased in response to such initiatives from the all-time lows we experienced in 2021, reaching a peak of just over 7% last October. As a result, prospective buyers’ purchasing power was reduced, which led to some of them pausing their plans.
The rate of inflation is now beginning to decline. Mortgage rates have fallen below their peak from last year as a result. Sam Khater, Freddie Mac’s chief economist, explains:
While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.
If you’re a buyer looking to enter the home market again, that could be fantastic news for you. Any decrease in mortgage rates increases your ability to buy by lowering your anticipated monthly mortgage payment. The reduced mortgage rates that analysts anticipate this year may be exactly what you need to rekindle your desire to buy a home.
While this presents a chance for you, keep in mind that rates won’t likely return to the historic lows we witnessed in 2021. Analysts concur that this is not the range on which purchasers should bet. Bankrate’s Chief Financial Analyst, Greg McBride, explains:
I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.
In order to have a realistic outlook for this year, it’s vital to seek the assistance of knowledgeable real estate professionals. You might be shocked by the effect of even a slight mortgage rate decrease on your spending plan. If you’re prepared to purchase a home right away, the current market offers the chance to find your ideal home, obtain a cheaper mortgage rate, and have less buyer competition.
Summing It Up
The recent decrease in mortgage rates is fantastic news, but waiting until 3% if you’re ready to buy now is a mistake. Please consult a local lender to determine how current interest rates may affect your objectives, and then get in touch to discuss your possibilities in the local Cobb County real estate market. You can reach us at 404-410-6465, or visit CompleteRealtyTeam.com.