If you are considering starting a purchasing process, you may have already heard some news with the headline “Interest Rates Are Rising,” but what does this mean for buyers?

So far this year, rates for a 30-year fixed mortgage have increased more than 2 percentage points, this increase is due to increase. forcing buyers to make a decision between buying now or waiting a while in the hope that mortgage rates will fall. However, the second option is very unlikely if we look at the historical context of mortgage rates.

Historical mortgage rate data

Next, we will present a graph with the historical record of mortgage rates from 1971 to the present:

As seen in the graph, although rates have seen a percentage increase of more than 2%, that percentage today remains below the historical average of 8% for the last 50 years. years. This is a clear indication that it is still a good time to buy your home with a mortgage loan.

The future of mortgage rates

It is difficult to deduce exactly how much mortgage rates could increase or decrease, since all these studies are based on estimates and there are variables such as inflationary pressure that could have a favorable or unfavorable impact the appreciation of mortgage rates.

However, if we analyze the projections for the last two years we will see a periodic increase in mortgage rate values. If you are interested in buying a home with financing, this increase in mortgage rates translates into a higher payment of credit installments, that is, the more mortgage rates increase, the more expensive they are. What will be the payment installments?

This is the definitive reason that is driving more buyers to take action now. Nadia Evangelou, Economist at NAR (National Association of Realtors) says:

“With even higher interest rates on the horizon, I see no reason to delay buying a home right now. “If you feel financially secure, you should start looking for a home.”

Buying now could be the wisest decision you could make, but if you are still not completely convinced communí Stay with us and let's do an analysis and determine what would be the best decision for your current condition, also if you decide buy we can provide you with the professional advice necessary to start the process.