How Changing Mortgage Rates Can Affect You

The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, its helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

What This Means for You

You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS,
It is typically a fools errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers monthly payments.

That’s why its critical to lean on your expert local mortgage broker like CM Mortgage Services, Inc. to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around todays volatility. Will offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision. Call CM Mortgage today at 610-430-6852.