Last year, the\u00a0Federal Reserve<\/em>\u00a0took action to try to bring down inflation. In response to those efforts,\u00a0mortgage rates\u00a0jumped up rapidly from the record lows we saw in 2021, peaking at just over 7%\u00a0last October. Hopeful\u00a0buyers\u00a0experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.<\/p>\n

Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year\u2019s peak. Sam Khater, Chief Economist at\u00a0Freddie Mac<\/em>,\u00a0shares<\/a>:<\/p>\n

\u201cWhile mortgage market activity has significantly shrunk over the last year,\u00a0inflationary pressures are easing and should lead to lower mortgage rates in 2023<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

That\u2019s potentially great news if you\u2019re a\u00a0buyer\u00a0aiming to jump back into the housing market. Any drop in mortgage rates helps boost your\u00a0purchasing power\u00a0by bringing down your expected monthly mortgage payment. This means the lower mortgage rates\u00a0experts\u00a0forecast\u00a0this year could be just what you need to reignite your homebuying goals. <\/p>\n

While this opens up a window of opportunity for you, remember; you shouldn\u2019t expect rates to drop back down to record lows like we saw in 2021. Experts agree that\u2019s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate<\/em>,\u00a0explains<\/a>:<\/p>\n

\u201cI think we could be surprised at how much mortgage rates pull back this year. But\u00a0we\u2019re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.<\/strong>\u201d<\/em><\/p><\/blockquote>\n

It\u2019s important to have a realistic vision for what you can expect this year, and that\u2019s where the advice of expert\u00a0real estate\u00a0advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you\u2019re ready to\u00a0buy a home\u00a0now, today\u2019s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face\u00a0less competition\u00a0from other buyers.<\/p>\n

 <\/p>\n

Bottom Line<\/strong><\/h3>\n

The recent pullback in mortgage rates is great news \u2013 but if you\u2019re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today\u2019s rates impact your goals, and let\u2019s connect to explore your options in our area. Call us today to get your home buying process started with experienced professionals who are dedicated to getting you the best deal possible and making it simple.<\/p>\n

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