Be Patient, Mortgage Rates Will Drop
December 10, 2022
The rise in mortgage interest rates, which reached 7% at one point, has had an impact on the Columbus GA real estate market as many potential buyers have held off due to reduced buying power. Fortunately, rates have already dropped back down to around 6% and there are signs that interest rates may drop further in 2023.
Inflation is the biggest factor in continued high interest mortgage rates. However, in recent weeks, there have been signs of inflation dropping, which will see interest rates drop. Industry economists are looking for more stability in the mortgage-backed security (MBS) market, along with less aggressive action from the Federal Reserve, which should signal that mortgage rates have peaked and are likely to drop.
Other economists also think that the Federal Reserve is working to reduce inflation and that it may drop even sooner than expected. This will translate into lower mortgage rates sooner, as well.
While it’s still a matter of having to wait and see what happens, there has been some hope. Inflation is hard to predict, and while some economists think the start of the year may be rocky, some are saying that things should start improving by the middle or end of next year. If you’re serious about wanting to purchase a home in 2023, your best bet is to explore various mortgage loan options and check with multiple lenders to find the best rates and terms. Take advantage of any loans which may help right now, such as FHA or VA loans, or 2-1 temporary rate buydowns, etc. Talk to well-informed lenders and look for incentives from sellers that can make purchasing a home possible right now, with the option of refinancing or locking in a better rate once mortgage rates have dropped.
Now may not be the ideal time to buy compared to earlier low interest rates, but it’s not impossible by any means. An experienced Columbus GA real estate agent will also be able to help you find the right home for your needs and budget. If you’re in the market for a home, contact us today to start your search and see what options are available to you. Perhaps interest rates will drop even sooner than expected.Tags: new homes columbus, new homes columbus ga, Real Estate Jobs Columbus GA
This post was written by Rose Anne Erickson