Here’s the latest news on Mortgage Rates in 2022.
If you haven’t seen the news, the Fed has announced that they’ll be increasing interest rates 2 and maybe 3 times this year in an effort to cool inflation. What that means for you, if you’re thinking of buying a home, you would be wise to buy now. Don’t wait. Interest rates are already at 3.5% and I anticipate rates to climb another point by the end of the year.
I have many buyers saying they’ll wait because they think house prices will drop and they’re expecting mortgage rates to come down again. Don’t play that game if you want to buy a home. Tampa Bay is a HOT sellers market still and interest rates will only go up this year.
As interest rates increase, you’ll be able to afford less house. Here’s why: You’re approved for a mortgage certain amount based on your debt to income ratio and credit score. Your monthly payment consists of PITI:
That interest rate can add over $100 or more per month to your payment as rates rise. So as interest payments increase, your principle amount must decrease.
Bottom line, if you’re in the market for a new home, call me right away so we can get you on the path to home ownership before interest rates and home prices increase further.
Remember, for your real estate dreams, don’t get antsy, just call Nancy!