Mortgage rates have recently started to increase, and this has garnered significant media coverage. If you've been keeping up with the news, you might have noticed that rates have recently reached their highest point in more than 20 years (as shown in the graph below)

 

It can be quite disheartening if you're considering a move. If you're contemplating whether to postpone your plans, here's the essential information you should be aware of.  

How Higher Mortgage Rates Impact You  

There's no doubt that mortgage interest rates are currently higher than they have been in the past few years. When interest rates rise, it has a direct impact on the affordability of homes. Here's how it works: As interest rates increase, the cost of borrowing money to purchase a home also goes up. This means that as rates continue to climb, the monthly mortgage payment for your prospective home loan will also go up.

Urban Institute explains how this is impacting buyers and sellers right now: 

When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.” 

 Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy? 

Where Will Mortgage Rates Go from Here? 

 If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.  

Forecasts project rates will fall in the months ahead, but what the latest data says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.  

The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states: 

“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.” 

Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now. 

In Short,

The most valuable advice for your move is to refrain from attempting to manage factors beyond your control, particularly mortgage rates. Even the most knowledgeable experts cannot accurately predict their future direction. Instead, concentrate on assembling a team of reliable professionals who can keep you well-informed. When you're prepared to initiate the process, let's establish a connection.