Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates

<article class="post-81645 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-81645"><span class="entry-date">November 8, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Two+Graphs+That+Show+Why+You+Shouldn%E2%80%99t+Be+Upset+About+3%25+Mortgage+Rates&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Ftwo-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171114/20211108-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171114/20211108-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171114/20211108-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>With the average 30-year fixed mortgage rate from <a href="http://www.freddiemac.com/pmms/"><em>Freddie Mac</em></a> climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts <a href="https://www.simplifyingthemarket.com/2021/10/12/dont-wait-for-a-lower-mortgage-rate-it-could-cost-you/?a=712984-fa409495d5d70154d03a25e81e9540e2">project</a> rates will rise further in the coming months, that conversation isn’t going away any time soon.<span id="more-45455"></span></p>
<p>But as a homebuyer, what do <a href="https://www.simplifyingthemarket.com/2021/10/05/the-main-key-to-understanding-the-rise-in-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2">rates</a> above 3% <em>really</em> mean?</p>
<h4><strong>Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity</strong></h4>
<p>Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The <a href="http://www.freddiemac.com/pmms/pmms_archives.html">graph</a> below shows today’s rate in comparison to average rates over the last five years:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04170934/20211108-MEM-ENG-1.png"><img alt="Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | Simplifying The Market" class="aligncenter wp-image-45456" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04170934/20211108-MEM-ENG-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04170934/20211108-MEM-ENG-1.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04170934/20211108-MEM-ENG-1-400×300.png 400w" width="650"/></a>As the graph shows, even though today’s rate is above 3%, <strong>it’s still incredibly competitive. </strong></p>
<p>But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years <em>(see graph below):</em><a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171031/20211108-MEM-ENG-2.png"><img alt="Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | Simplifying The Market" class="aligncenter wp-image-45457" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171031/20211108-MEM-ENG-2.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171031/20211108-MEM-ENG-2.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/04171031/20211108-MEM-ENG-2-400×300.png 400w" width="650"/></a>When we look back even further, we can see that <strong>today’s rate is truly outstanding by comparison</strong>.</p>
<h4><strong>What Does That Mean for You?</strong></h4>
<p>Being upset that you missed out on sub-3% mortgage rates is understandable. But it’s important to realize, buying now still makes sense as <a href="https://www.simplifyingthemarket.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/?a=712984-fa409495d5d70154d03a25e81e9540e2">experts project</a> rates will continue to rise. And as rates rise, it will cost more to purchase a home.</p>
<p>As Mark Fleming, Chief Economist at <em>First American</em>, <a href="https://blog.firstam.com/economics/how-will-rising-mortgage-rates-impact-house-buying-power">explains</a>:</p>
<blockquote>
<p><em>“Rising mortgage rates, all else equal, will diminish house-buying power, <strong>meaning it will cost more per month for a borrower to buy ‘their same home.’”</strong></em></p>
</blockquote>
<p>In other words, <strong>the longer you wait, the more it will </strong><a href="https://www.simplifyingthemarket.com/2021/09/23/two-reasons-why-waiting-a-year-to-buy-could-cost-you/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>cost you</strong></a><strong>.</strong></p>
<h3><strong>Bottom Line</strong></h3>
<p>While it’s true today’s average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn’t deter you from your homebuying goals. Historically, today’s rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. Let’s connect so you can lock in a great rate now.</p>
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