If you need assistance, please call 630-276-7575

Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates

Monday, November 8, 2021   /   by Teresa Ryan

Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates

With the average 30-year fixed mortgage rate from Freddie Mac climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon.


But as a homebuyer, what do rates above 3% really mean?


Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity

Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years:
download.jpg

As the graph shows, even though today’s rate is above 3%, 
it’s still incredibly competitive.

But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years (see graph below):
download (1).jpg

When we look back even further, we can see that today’s rate is truly outstanding by comparison.


What Does That Mean for You?

Being upset that you missed out on sub-3% mortgage rates is understandable. But it’s important to realize, buying now still makes sense as experts project rates will continue to rise. And as rates rise, it will cost more to purchase a home.


As Mark Fleming, Chief Economist at First Americanexplains:

“Rising mortgage rates, all else equal, will diminish house-buying power, meaning it will cost more per month for a borrower to buy ‘their same home.’”


In other words, the longer you wait, the more it will cost you.


Bottom Line

While it’s true today’s average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn’t deter you from your homebuying goals. Historically, today’s rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. Let’s connect so you can lock in a great rate now.


Call
Teresa Ryan at 630-718-0424 today, for your home buying and selling needs in Naperville and the Western Suburbs of Chicago. For inquiries, please call 630-276-7575.

Subscribe to our YouTube Channel for real estate insights, updates, and news!
https://bit.ly/RHG-Youtube

Join us on social:
Facebook: https://www.facebook.com/RyanHillGroup/
Twitter: https://twitter.com/ryanhillgroup
Instagram: https://www.instagram.com/ryanhillgroup/


  naperville il, teresa ryan, century 21 affiliated naperville, ryan hill group, homebuyer, homebuying tips, first time homebuyer, home buying tips, buy a house

Ryan Hill Group - Century 21 Affiliated
Teresa Ryan
1288 Rickert Dr, Ste 300
Naperville, IL 60540
630-276-7575
630-718-0424

The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data LLC. Real Estate listings held by brokerage firms other than Teresa Ryan - Ryan Hill Group - Century 21 Affiliated are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. © Many homes contain recording devices, and buyers should be aware they may be recorded during a showing. Copyright © 2021 Midwest Real Estate Data LLC Information deemed reliable but not guaranteed. Properties marked with the MRED icon are provided courtesy of Midwest Real Estate Data, LLC. Broker Reciprocity. Use of this site constitutes agreement to the terms and conditions. DMCA Notice
This site powered by CINC: www.cincpro.com