In an attempt to manage inflation, the Federal Reserve made some adjustments last year which caused mortgage rates to skyrocket from their 2021 historic lows of around 7% in October. Unfortunately, this monumental leap had a detrimental impact on prospective buyers' purchasing power, leading several people to put off making any decisions.
As the rate of inflation sees a reduction, we are seeing mortgage rates hit a lower peak than they did last year. Sam Khater, Chief Economist atFreddie Mac explains:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
If you are a prospective buyer raring to purchase a home, then lower mortgage rates could be the answer to your prayers. The decrease in interest rates can help jumpstart your homeownership dreams by cutting down your expected monthly mortgage payment and boosting purchasing power. Experts have predicted that this year we will see even more of such favorable market conditions for buyers like yourself - so don't wait any longer on starting those house-hunting sessions!
While this creates an abundance of potential for you, bear in mind that it's unlikely those rates will drop to the unprecedented lows we saw back in 2021. Financial experts all agree that buyers shouldn't count on such a low range and Greg McBride, Chief Financial Analyst at Bankrate confirms:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
It's essential to have an attainable plan for what you envision taking place this year, and that's where the expertise of experienced real estate consultants is invaluable. You may be shocked by the effect even a slight decrease in mortgage rates has on your budget! If you're ready to purchase a home right now, today's market could afford you with more cost-effective mortgages than before--enabling you not only to find your ideal house but also beat out other buyers who are vying against each other.
Now is the perfect time to take advantage of the recent decline in mortgage rates - don't delay and wait for that dream rate of 3%. Partner with a local lender to discover how today's current rates can help you reach your buying goals. Connect with me now so we can start looking into all the fantastic options available here in our area!
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