How Increased Mortgage Rates Affect Homebuyers

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If you are planning on buying a home relatively soon or have started your research on buying a home, you might have seen rising mortgage rates. 

While the mortgage rates were very low the past couple of years due to the pandemic, they are starting to increase again. According to a recent study by Freddie Mac, mortgage rates have increased by over two percentage points this year.

Buyers have a few options when it comes to dealing with rising mortgage rates, but it all depends on your situation. You can either buy now and not wait any longer for the rates to increase even more or you can put a halt to your search and wait to see if the rates start to fall.

Obviously this all depends on your financial and even current living situation. If you are in a situation where you can afford the mortgage rates right now and you do not want to wait, then go ahead but be prepared. If you are not in the right financial situation and you can wait to buy a home, then wait it out and see if the rates fall.

Before you make your decision, do your research. The people who are deciding to take the plunge and buy a home now before the rates possibly increase more, have seen and realized that the mortgage rates have steadily increased this year and might do so into next year as well.

When mortgage rates increase, so do your monthly mortgage payments. So, if you decide to wait to see how the rates are in a few months or even a year, you might end up spending more money than you want. If you have the money to buy now and it fits your situation, go ahead and buy now before rates potentially rise even higher.