Should I Care About Interest Rates?

Ed: There have been a lot of headlines talking about rates having gone up in the last couple years, but while many recent first time home buyers got used to the historically low interest rates we saw a few years ago, many people may be surprised to know that the mortgage rates are actually still below the 50-year historical average.

Towanna: And the truth is, while interest rates can impact your monthly mortgage payments and the overall cost of your mortgage payment is most impacted by your purchase price.

Ed: Although rates can go up or down, home prices have increased by at least 4% per year over the last 25 years.

Towanna: Even with current mortgage rates last year alone prices climbed 5.5%

Ed: With such a low inventory a homes across most markets, home prices will likely continue to go up, and that’s why you’ll often hear real estate agents say marry the price, date the rate.

Towanna: While you can always refinance a mortgage if rates go down you can’t pay yesterday’s prices for today’s perfect dream home.

Ed: So talk to your agent today about finding the right home for you that fits your budget.