Maybe It’s Time to Stop Obsessing Over Mortgage Rates
Rates Are Just One Piece of the Puzzle
Lately, I’ve been hearing a lot of chatter about mortgage rates hovering around 6.85%. I get it—those numbers can make anyone pause. But here’s the deal: waiting for rates to drop might not be the golden ticket to your dream home.
According to the National Association of REALTORS®, buyers should consider the bigger picture. Focusing solely on mortgage rates can be misleading. Instead, it’s essential to look at the total monthly costs, including insurance, taxes, HOA fees, and maintenance. And it really doesn’t hurt to do so in a hot market with low interest rates—pricing out total costs gives you a clear picture of what you can truly afford.
Why Waiting Might Cost You More
Let’s crunch some numbers. With a 6.89% mortgage rate, a $400,000 home with a 20% down payment would result in a monthly payment of about $2,105. If you’re waiting for rates to drop to 5.5%, but home prices increase by 10% in the meantime, your monthly payment could end up being higher than if you bought now.
In Tampa, we’ve seen home prices steadily rise, and inventory is becoming increasingly tight. Waiting could mean facing higher prices and more competition. It’s essential to weigh the potential benefits of waiting against the risks of increased costs.
Smart Moves in Today’s Market
Here’s what to do in the current market:
- Get Pre-Approved: Understand your budget and what you can afford monthly.
- Consider Total Costs: Look beyond the mortgage rate to include all monthly expenses.
- Act Decisively: If you find a home that fits your needs and budget, don’t hesitate.
- Partner With a Local Expert: As a third-generation Tampa native and experienced real estate agent, I’m here to guide you through finding a place that caters to your lifestyle and budget.
Let’s Find Your Perfect Home
I know the Tampa market inside and out. I love living here, and I want to help you find a place here to call home, too! Browse my latest listings and check out my market updates.
Send me a note or give me a call directly at 813-240-6563. Real estate is what I do, and I never tire of giving the inside scoop on Tampa with my expert tips.
Note: The information provided is based on current market trends and data from the National Association of REALTORS® and Freddie Mac. Always consult with a financial advisor for personalized advice.