{"id":8235,"date":"2024-01-08T11:30:00","date_gmt":"2024-01-08T11:30:00","guid":{"rendered":"https:\/\/thezakariagroup.com\/what-lower-mortgage-rates-mean-for-your-purchasing-power\/"},"modified":"2024-01-08T11:30:00","modified_gmt":"2024-01-08T11:30:00","slug":"what-lower-mortgage-rates-mean-for-your-purchasing-power","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/what-lower-mortgage-rates-mean-for-your-purchasing-power\/","title":{"rendered":"What Lower Mortgage Rates Mean for Your Purchasing Power"},"content":{"rendered":"
If you want to buy a home<\/a>, it’s important to know how mortgage rates<\/a> impact what you can afford and how much you\u2019ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under 7%<\/a>, according to Freddie Mac<\/em> (see graph below<\/em>):<\/p>\n \u00a0<\/a><\/p>\n <\/p>\n This recent trend is great news for buyers<\/a>. As a recent article from Bankrate<\/em> says<\/a>:<\/p>\n \u201cThe rate cool-off somewhat eases the housing affordability squeeze.\u201d<\/em><\/p><\/blockquote>\n And according<\/a> to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association<\/em> (MBA):<\/p>\n \u201cMBA expects that affordability conditions will continue to improve as mortgage rates decline . . .\u201d<\/em><\/p><\/blockquote>\n Here\u2019s a bit more context on how this could help with your plans to buy a home<\/a>.<\/p>\n Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to become a homeowner<\/a>. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below<\/em>):<\/p>\n \u00a0<\/a><\/p>\n <\/p>\n As you can see, even small changes in rates can affect your budget and the loan amount you can afford.<\/p>\n When you’re looking to buy a home<\/a>, it’s important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.<\/p>\n By looking at the numbers and the latest data together, then adjusting your strategy based on today’s rates, you’ll be better prepared and ready to buy a home.<\/p>\n If you\u2019re looking to buy a home<\/a>, you should know the recent downward trend in mortgage rates is good news for your move. Team up with a trusted real estate agent<\/a> and lender to plan your next steps.\u00a0<\/p>\n<\/div>\nHow Mortgage Rates Affect Your Search for a Home<\/strong><\/h4>\n
Get Help from Reliable Experts To Understand Your Budget and Plan Ahead<\/strong><\/h4>\n
Bottom Line<\/h3>\n