How Smart Buyers Are Approaching Rising Mortgage Rates

<article class="post-97413 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-97413"><span class="entry-date">November 24, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">How Smart Buyers Are Approaching Rising 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=How+Smart+Buyers+Are+Approaching+Rising+Mortgage+Rates&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhow-smart-buyers-are-approaching-rising-mortgage-rates%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="How Smart Buyers Are Approaching Rising 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/2021/11/19101321/20211124-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101321/20211124-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101321/20211124-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>Last week, the average 30-year fixed mortgage rate from <a href="http://www.freddiemac.com/pmms/"><em>Freddie Mac</em></a> inched up to 3.1%, and <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 rising through 2022:<span id="more-45554"></span></p>
<blockquote>
<p><em>“The 30-year fixed-rate mortgage was 2.9% in the third quarter of 2021. We forecast mortgage rates to increase slightly through the remainder of the year and reach 3.0%, <strong>rising to 3.5% for full year 2022.”</strong></em></p>
</blockquote>
<p><strong>If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage </strong><a href="https://www.simplifyingthemarket.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>rates rise</strong></a><strong>. </strong></p>
<h4><strong>Taking Time Off Can Be Costly</strong></h4>
<p>Mortgage rates play a significant role in your home search. As rates go up, your monthly mortgage payment increases if you’re buying a home, directly affecting how much you can afford. And even the smallest increase can have a large impact on your <a href="https://www.mortgagecalculator.net/">monthly payment</a> <em>(see chart below)</em>:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101323/20211124-MEM-Eng-1.png"><img alt="How Smart Buyers Are Approaching Rising Mortgage Rates | Simplifying The Market" class="aligncenter wp-image-45556" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101323/20211124-MEM-Eng-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101323/20211124-MEM-Eng-1.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/11/19101323/20211124-MEM-Eng-1-400×300.png 400w" width="650"/></a>With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of waiting and hoping rates will fall, today’s rates should motivate you to purchase now before rates increase more.</p>
<h4><strong>Smart Buyers Can Succeed by Planning Ahead</strong></h4>
<p>You can use your newfound motivation to energize your search and plan your next steps accordingly so you’re prepared to act no matter what happens with mortgage rates. One way to do that: <strong>take rising rates into consideration as part of your budget. </strong></p>
<p>Danielle Hale, Chief Economist at <em>realtor.com, </em>puts it best, <a href="https://www.realtor.com/news/real-estate-news/mortgage-rates-jump-above-3-creating-pressure-for-home-buyers/">saying</a>:</p>
<blockquote>
<p><em>“Smart buyers should consider calculating a monthly payment not only at today’s rates, <strong>but also at rates that are a bit higher</strong> <strong>so that they won’t be derailed by a sudden upward move</strong>. . . .”</em></p>
</blockquote>
<p>You should also be ready to act when you find the home that meets your needs. That means getting <a href="https://www.simplifyingthemarket.com/2021/10/29/the-mortgage-process-doesnt-have-to-be-scary-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">pre-approved</a> with a lender so there won’t be any delays when the time arrives.</p>
<p>The best way to prepare is to work with a trusted real estate advisor <strong>now</strong>. An agent can connect you with a lender, help you adjust your search based on your budget, and be ready to act quickly when it’s time to <a href="https://www.simplifyingthemarket.com/2021/09/15/5-tips-for-making-your-best-offer/?a=712984-fa409495d5d70154d03a25e81e9540e2">make an offer</a>.</p>
<h3><strong>Bottom Line</strong></h3>
<p>Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let’s connect today so you can better understand your budget and be prepared to buy your home even before rates climb higher.</p>
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