After enjoying several years of record low interest rates, the change in administrations in Washington, D.C. has once again seen mortgage rates on the rise again. Many prospective home buyers have concerns regarding this issue because the higher prices or homes and increased interest rates have made buying a home less affordable. So, if you’re considering buying a home in 2023, you might be wondering whether or not this is the ideal time to do so.
Buying a Home in 2023
According to the MBA (Mortgage Bankers Association), the month of February 2023 witnessed rate increases across the board. The increase was driven primarily by market expectations about persistent inflation, thereby requiring the Federal Reserve to maintain a restrictive monetary policy for a longer period of time. The most recent average for a 30-year fixed rate mortgage was 6.5% according to Freddie Mac. This is the highest we’ve seen mortgage rates to date.
So, what advice do we have for prospective home buyers who are thinking about holding off because of rising rates? You might want to reconsider as the current circumstances may provide an opportunity to purchase the home you’ve been thinking about. The MBA recently stated that there was a 13.3% decline in home mortgage applications in the first week of February. So, it seems that the rise in rates is causing some buyers to curtail their search for a home.
So, what does all of this mean for prospective buyers? It’s likely that you’ll face less competition if you maintain your plans. All things considered; this could be a relief considering housing inventories are still relatively low throughout Colorado’s market. Over the past month, we’ve seen an increase in mortgage rates. However, this doesn’t mean you should postpone your home buying plans. In fact, it may just mean the exact opposite if you feel like taking advantage of decreased competition in the market.
There are a couple of ways that a mortgage broker can help you find a home when the inventory is limited. Based on calculations about your credit score, household income, and savings, you may be assuming that you have to stick to a certain price range when buying a home. Mortgage brokers can open up more options to a broader price range. Secondly, mortgage brokers have typically developed deeper, long-term relationships with real estate industry professionals and have more access to larger inventories.
Buying a Home or Refinancing in Colorado Springs
When considering the purchase of a new home, working with a mortgage broker like Front Range Mortgage will provide access to more lending options. The experts are here to help you take an informed decision. Call us today at (719) 540-2020 to learn more about our services.