Understanding How Mortgage Rates Affect Your Purchasing Power

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If you’re considering buying a home, it’s important to know how mortgage rates can impact your purchasing power. Currently, the 30-year fixed mortgage rate has been fluctuating between 6% and 7% this year. Even a small percentage shift, such as 0.5%, can significantly affect your monthly mortgage payment. The chart below illustrates the general relationship between mortgage rates and monthly mortgage payments.

While waiting for rates to drop may be tempting, it’s not a wise decision as no one can predict where rates will go. Lisa Sturtevant, Housing Economist at Bright MLS, warns that “trying to time rates in this market is typically a fool’s errand for a homebuyer… But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.”

The best course of action is to consult with your trusted real estate advisors to explore your mortgage options, understand the factors that impact mortgage rates, and plan your homebuying budget accordingly. They can also provide tailored advice to help you make an informed decision based on your specific situation and goals.

In conclusion, changing mortgage rates can affect your ability to buy a home. Therefore, it’s crucial to work with professionals who can guide you through the process and help you navigate today’s volatile market. So, if you’re considering buying a home, it’s a good idea to connect with your real estate advisor as soon as possible to ensure that you have a strong plan in place.

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Dowell Family Team
Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

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