How Changing Mortgage Rates Can Affect You

We are finally in full Bloom Spring weather and let me tell you something about how beautiful transition weather is in Las Vegas, especially after a rainy March. Flowers are growing and trees are blooming and all the shades of green are really glistening against are beautiful blue skies here in the Las Vegas area. Don't get me started on our recent sunrises and sunsets. Not sure there are many places that can beat Las Vegas Sunsets and Sunrises. Now on to business and the much talk on interest rates. They aren't as high as they were weeks past but are staying in the 6's. Even half a percentage can make a big difference. Keep in mind with a great negotiator by your side (like me :), your Realtor can help get sellers to pay down your rate and also connect you with a good mortgage lender that offers competitive rates. Let this article explain how much rates have an impact. Enjoy the article and as always reach out to me with any questions or concerns.

Your Las Vegas Realtor,
Paulina Palacios

The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

What This Means for You

You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS, explains:

“It is typically a fool’s errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.”

That’s why it’s critical to lean on your expert real estate advisors to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. They’ll also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision.

Bottom Line

Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, let’s connect so you have a strong plan in place.