How Changing Mortgage Rates Can Affect You

<article class="post-662986 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-662986"><span class="entry-date">April 3, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">How Changing Mortgage Rates Can Affect You</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=How+Changing+Mortgage+Rates+Can+Affect+You&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhow-changing-mortgage-rates-can-affect-you%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="How Changing Mortgage Rates Can Affect You Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230403-how-changing-mortgage-rates-can-affect-you-KCM.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>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, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power. </p>
<p>The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230331/20230403-example-buyers-purchasing-power-MEM.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230331/20230403-example-buyers-purchasing-power-MEM.png"/></a></p>
<p><strong>Even a 0.5% change can have a big impact on your monthly payment.</strong> 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.</p>
<h4><strong>What This Means for You</strong></h4>
<p>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 <em>Bright MLS</em>, <a href="https://www.linkedin.com/posts/lisa-sturtevant-48413051_mortgage-rates-activity-7042166632474898432-hpTf" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“It is typically a fool’s 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.”</em></p></blockquote>
<p>That’s why it’s critical to lean on your expert real estate advisors to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. They’ll also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision.</p>
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