With the arrival of the spring market, mortgage rates continue to rise. This mean some buyers will face challenges in their ability to afford their desired homes.
Even a half percentage point increase in the mortgage rate can add significantly to a home’s monthly payments or otherwise preclude the purchase entirely.
And while the U.S. market has enjoyed unprecedented low interest rates for a longer period than anyone might have expected, that trend is coming to an end. Add to this the fact that home prices continue to rise and inventory shortages are vexing homebuyers, and you have a perfect storm ahead.
The good news is this: rates are still considered below historic norms! It’s been more than eight years since we last saw average rates on a 30-year fixed mortgage above 5 percent, which means there’s still plenty of opportunity for savvy, well-positioned buyers. And, for the time being, rates on jumbo mortgage loans continue to be competitive in the country’s most expensive markets, including Northern California.
So, what does all this mean? Well, it means now is the time to buy. If you are considering purchasing a home, it is important to sit down with a Realtor and discuss your goals. Doing so will help provide you with a realistic assessment of your options and ensure any once-in-a-lifetime opportunities for homeownership aren’t missed.
Remember, working with an agent who has a deep understanding of your regional market, and who also keeps in touch with potential sellers biding their time, can make all the difference for you as the buyer.