Mortgage Rates and Housing Affordability

As the market and inflation continue to evolve, many homebuyers are asking if this is a good time to purchase their home. I would say to know the facts of what is happening in the market, research homes in the area you intend to buy, and above all keep yourself at the hosing price you can afford.

As inflation continues to hit the economy, we have seen how mortgage rates are responding to inflation. That response may affect how much house you can afford. At the beginning of 2022 interest rates were lower at 3.25% as months were passing by October mortgage rates hit almost 6.75% and it is expected to continue to go higher. The higher the interest rate the most your mortgage monthly payment will be affected.

Should higher interest rates stop you from pursuing buying a home? The recommendation is to be cautious, and have a team of housing professionals especially your real estate agent and loan officer that could guide you. Keep your focus on knowing how much house you can afford and look for a home in the price range your mortgage payment is within the budget you have planned. Also, consider that landlords may be considering raising rent, and becoming a homeowner with a fix rate mortgage gives you the benefit of stability in your monthly payment.

Always do your research and follow the advice of your team of professionals. If you feel you are ready to purchase a home, take our home buyer class to know details about financial planning, the home purchase process, and down payment assistance. To register please visit and consult a local housing professional to assist you today!


Posted: October 30, 2022

Category: Home Management, Money Matters
Tags: Down Payment Assistance, Home Purchase, Housing Affordability, Mortgage Rates

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