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

Dated: November 8 2021

Views: 2

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

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

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:Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | MyKCMAs 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):Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | MyKCMWhen 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.

Blog author image

Nanci Gilbert, PA

Nanci strives to provide every client with a smooth and worry-free experience when it comes to buying and selling real estate. In an industry that can move very quickly, she prides herself on taking t....

Latest Blog Posts

A Checklist for Selling Your House This Winter"

A Checklist for Selling Your House This Winter Some HighlightsIf you’re planning to sell your house this winter, you’ll want it to look its best inside and out.Take the

Read More

Tips for Single Homebuyers: How To Make Your Dream a Reality"

Tips for Single Homebuyers: How To Make Your Dream a RealityIf you’re living on your own and looking to buy a home, know that you can make your dream a reality with thoughtful

Read More

How To Think Strategically as a Buyer in Today’s Market!

How To Think Strategically as a Buyer in Today’s MarketThe game of chess can provide incredible lessons to apply to all aspects of life, including the homebuying process. Chess requires you to

Read More

Home Is Where the Heart Is More than Ever This Year"

Home Is Where the Heart Is More than Ever This YearThere’s no denying the financial benefits of homeownership, but what’s often overlooked are the feelings of gratitude,

Read More