It's Pumpkin Spice Season - Ready for your new home?

Mortgage rates have climbed back to a level buyers haven’t seen in more than a year. Bankrate’s daily national average for a 30-year fixed mortgage reached 7% on September 15, after rates had dipped below 6% earlier this year. That’s a significant change in affordability, and we expect more buyers to ask whether they should simply wait for rates to come back down. I believe, though that this is a chance to look at the entire financial picture, including your monthly payment, home price, available inventory, competition, and how long you realistically plan to own the home.

Waiting for a lower rate doesn’t necessarily guarantee a better deal. An analysis from wholesale lender AD Mortgage, reported by Realtor.com, found that buying immediately produced a lower total purchase and financing cost than waiting two years in 61% of the scenarios studied, though waiting worked better in some cases. Lower rates can also bring sidelined buyers back into the market, potentially increasing competition and putting upward pressure on prices. This doesn’t necessarily mean that you  need to buy now, but I can hep you to look at  both scenarios: What does buying at today’s rate look like versus waiting, and what else could change while you wait?

I can also help you to potentially lower their borrowing costs. Discount points allow borrowers to pay upfront for a lower mortgage rate, and seller concessions may sometimes be used toward that cost. But a buydown isn’t automatically a good deal. Buyers need to calculate how long it will take for the monthly savings to recoup the upfront expense, and you should consider whether youmight refinance before reaching that break-even point. This is where working closely with a trusted lender can help agents shift the conversation from “7% is too high” to what makes financial sense for you.  I can hook you up with a couple of GREAT lenders.