As you probably know, mortgage rates have been on the rise since the beginning of May. Even though this abrupt increase is unusual it shouldn’t affect your decision to purchase a home. Historically rates still remain low and the impact of rising rates on your monthly payments is not as great as you might think.
The current rate increase results in about an extra $30 per month for every $100,000 borrowed. If you have been pre-approved for a mortgage longer than 30 days ago you may want to contact your loan officer to make sure you are still on track with your budget. Utilize the loan calculators on my website to determine what you can afford at today’s interest rates.
Also, if you are currently on the house hunt you could take advantage of our Lock and Shop benefit which allows you to lock in a rate now before you have a property selected. This will take some of the worry out of the home buying process and ease the sense of urgency that rising rates creates.