The Federal Reserve took steps last year to reduce inflation. The mortgage rates rose rapidly after the 2021 record lows and reached a peak of just over 7% in October. Some buyers felt a decrease in their purchasing power and decided to halt their plans.
The rate of inflation is beginning to fall today. As a result, mortgage rates are now lower than last year’s peak. Although mortgage activity has declined significantly over the past year, inflationary forces are decreasing and should result in lower mortgage rates for 2023.
This is great news for buyers who are looking to get back in the housing market. A drop in mortgage rates can help boost your buying power and lower your monthly mortgage payment. The lower mortgage rates experts predicted this fiscal year may be what you need in order to rekindle your passion for homebuying.
This opens up opportunities for you but don’t expect rates dropping to records lows, as we saw in 2021.
It is important to have an accurate vision of what you can expect for the next year. Expert real estate advisors are critical. A slight drop in mortgage rates can have a significant impact on your budget. You can purchase a home today if you are ready. Today’s market offers the chance to get a lower mortgage rate, find your dream house, and face less competition.
Although the recent decrease in mortgage rates is good news, it is not a wise decision to wait for 3% if you are ready to purchase now.
Let’s talk about how rates today can impact your goals and discuss your options in this area. Contact Preferred Properties of Texas today to speak to one of our knowledgeable agents.