I’m planning the home buying process this summer, but I’ve noticed that mortgage interest rates have been slowly rising for the past couple of months. A friend mentioned that with higher interest rates I won’t be able to qualify for as large of a mortgage as I would be able to with lower interest rates and it really got me to thinking. Should I speed up my timeline to this spring so I can purchase a home I really love instead of compromising for something in a lower price range?
Yes, if you are concerned about rates going up then you should speed up your timeline! I know they have ticked up a bit over the past couple months, but mortgage rates are historically still VERY attractive and I don’t expect them to move aggressively over the next 3-4 months, but every ¼ point does add up! As the economy gets stronger, rates will continue to work their way up and the days of really cheap money are over. The real concern is what I call the “double whammy”. This is where rates are going up at the same time home prices are going up, which leads to home affordability really getting pinched.
If you can move your time line up a bit, it’s probably a good idea to help ensure you get in on the lowest rate possible, because I don’t anticipate them going down again anytime soon. Lastly, try not to settle for something you don’t love! Loving where you live is a real gift and we encourage all our customers to make that their primary goal, regardless of their price range. Best of luck.
The Kimbrough team