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.
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.
In conclusion, when embarking on your journey to find the perfect Telluride home, remember this valuable piece of advice: while you can't control the unpredictable fluctuations in mortgage rates, you can control your approach to the real estate market. Our team at Mountain Rose Realty, led by the experienced Anne-Britt Ostlund, understands the intricacies of Telluride real estate like no other.
With a finger on the pulse of Telluride's dynamic housing market, we're here to guide you through the process seamlessly. Whether you're searching for Telluride homes for sale or contemplating selling your property in Telluride, CO, we've got you covered.
Connect with us when you're ready to take the next step in your real estate journey. Our dedicated team will provide you with the latest insights and assistance needed to make informed decisions. At Mountain Rose Realty, we don't just sell homes; we cultivate dreams. Explore Telluride with us and discover the finest properties this breathtaking region has to offer.
Your dream home in Telluride awaits, and we're here to make it a reality. Trust the local experts at Mountain Rose Realty for all your Telluride real estate needs.