How Mortgage Rate Changes Impact Your Homebuying Power

If you’re thinking about buying or selling a home, mortgage rates are probably top of mind. You’ve likely heard that these rates play a big role in how much you can afford in your monthly mortgage payment. So, it’s important to factor that into your plans. Let’s dive into what you need to know.

What’s Happening with Mortgage Rates?

Good news—mortgage rates have been trending down recently. But here’s the catch: rates can be a bit unpredictable since they’re influenced by a variety of factors.

The economy, job market, inflation, and even the Federal Reserve’s decisions all have a say in where mortgage rates go. So, while the downward trend is promising, rates can still fluctuate as new economic data comes in. As Odeta Kushi, Deputy Chief Economist at First American, puts it:

“The ongoing deceleration in inflation, coupled with the Federal Reserve’s recent indication of potential rate cuts [in 2024], suggests an environment supportive of modest declines in mortgage rates. Barring any unforeseen circumstances and resurgence in inflation, lower mortgage rates could be on the horizon, but the journey towards them might be slow and bumpy.”

How Do These Changes Affect You and How Do These Changes Impact Your Homebuying Power?

When mortgage rates shift, it directly impacts how much you’ll pay each month on your home loan. It is good to know how mortgage rate changes impact your homebuying power. Even a small change can make a big difference in your budget.

For example, if you’re targeting a monthly payment of around $2,600, the interest rate you lock in will determine how much house you can afford. The lower the rate, the more home you can potentially buy within your budget.

How Can You Keep Track of the Latest on Rates?

You don’t have to be a mortgage expert—that’s what real estate professionals are for. I’m here to help you understand what’s going on with rates and what it means for your homebuying power. I can provide you with the latest tools and insights, so you can see exactly how rate changes might affect your options.

Bottom Line

If you’ve got questions about the housing market, let’s chat. I’m here to make sure you’re informed and ready to navigate whatever comes your way.

Missy Wiesen

Missy Wiesen

949.887.6644

www.MissySellsOC.com

DRE #01745112

eXp Realty of California, Inc.