Why You Don’t Need to Fear Today’s Mortgage Rates
Mortgage rates have often felt like the monster hiding under the bed every small increase sends potential buyers running for cover. But waiting for the “perfect” 5-point-something rate could actually cost you more in the long run. According to the National Association of Realtors (NAR), a 30-year fixed mortgage rate of 6% would make homeownership possible for about 5.5 million more households, and if rates reach that “magic number,” demand will likely surge. That increased demand could push home prices higher, offsetting any savings from a slightly lower rate.
For example, the difference between today’s average rate of around 6.2% and 5.99% on a $400,000 mortgage is only about $50 per month less than many people spend on coffee runs or takeout. Meanwhile, buying now could offer you key advantages: more inventory to choose from, stronger negotiating power, and less competition.
Experts like Jessica Lautz, Deputy Chief Economist at NAR, point out that current rates have given smart buyers an opportunity to reenter the market with more options. And Matt Vernon, Head of Retail Lending at Bank of America, emphasizes that if a home fits your financial situation and goals, it might be better to act now instead of waiting for a rate that may never come.
Bottom line: Don’t let today’s mortgage rates hold you back.
