Where Is The 3% Mortgage Rate?

During the global pandemic, mortgage rates were at a record low of 3%, which aided in the buying power of those looking to invest in Real Estate. Now, with things returning to normal we must shift our expectations.

This low mortgage rate was a policy-based decision due to the ensuring economic emergency we were facing. We don't know when next we will see such low rates. We currently sit between a high 6% and a low 7%, and our current projections only see us settling into the mid 6%'s.

It's important to be aware of this as it heavily influences when some see themself in the market. If this is you, then you must consider the things you can control rather than the things you cannot. You can control your budget, credit, and whether you work with a professional who can assist in your understanding of the market. With trusted professionals, you can have expert insight into your financial options, and have a better insight into the local market you're operating in.

One final consideration. If you decide to jump into the market only when interest rates go down, so will everybody else. As a buyer, that increased competition is going to be more harmful to your buying power and could raise housing prices. So even with the current percentage rate being a bit higher than it is projected to be in the future, you may have the advantage if you jump in now. Expecially with the current inventory we are seeing. So, speak to an agent or a lender to strategize your next move.