When are mortgage rates going to drop?
Will rates keep rising?
Are rates going to level off from here?
We often hear these questions from clients when there is a fluctuating mortgage rate environment. The one thing we do know is that nobody has a crystal ball, but there are only 3 things that can happen.
3 Things That Could Happen to Mortgage Rates
1. Rates stay the same and nothing is gained or lost.
If rates stay the same, potential buyers remain in the same spot – with the choice to buy now or wait. Your unique situation and specific needs will help determine how you move forward.
2. Rates go up and make you a genius if you buy now and secure a lower rate than you would’ve gotten by waiting.
As a general rule, mortgage rates typically follow inflation. If inflation rates are low, it’s a sign that mortgage rates will typically ease. If inflation rates rise, mortgage rates will also rise. Buyers hoping for a lower rate may be kept waiting if mortgage rates continue to tick upward.
3. Rates go down… which means payments go down, more buyers enter the market, and prices typically go up.
If rates go down and you’re considering buying a home, you can be sure that many other buyers have the same idea. Lower rates mean more buyers looking for a home. Lower mortgage rates also signal higher home prices because sellers recognize more opportunities for selling their homes.
Find a Trusted Guide
If you buy now, you can secure the current prices, then refinance if rates drop, so you get the best of both worlds. We can even connect you to lenders who allow free refinance during the first 3 years of your mortgage.
Regardless of your goals or concerns, reach out to start a conversation and connect with a trusted guide today.
