Don’t let rising interest rates keep you out of the game!

Watching mortgage rates rise and fall is starting to feel like watching your favorite sports team in the final seconds of a losing game. You feel fear as the clock starts to tick down because you know the time to fix things is running out. But you also feel hope because there is a slight chance that your team might rebound at the last second and score the winning point. It’s an edge-of-your-seat feeling that can be very unsettling.

After years of low rates, the rising mortgage rates we face today embody that edge-of-your-seat-at-the-game feeling. Some would-be buyers sit in hope, waiting to see if rates will stabilize enough for them to get a good one. Other buyers begin to lose hope as rates climb higher, and they worry they won’t be able to buy, so they take themselves out of the game and remain on the sidelines, feeling disappointed.

The most challenging part of rising interest rates for many people is that they don’t understand why they are rising. Interest rates are complex and determined by factors out of a buyer’s control. Banks don’t just pick and choose an interest rate. The economic conditions of the market determine the rates they offer. Lenders need to be able to lend money at a rate that considers the market’s risks, the lender’s costs, and their profit margins.

The two most significant factors influencing interest rates are the economy’s health and inflation. As we all know, COVID-19 severely impacted the economy in all sectors, including real estate. This effect led to rapid inflation, which has caused the price of goods and services to rise. While inflation has been growing for years, it’s rising faster than ever after the pandemic. It’s why you pay so much more for a house now than your parents did!

As a first-time buyer, you don’t have control over the economy or inflation, and you can’t pick and choose your interest rate. So, what can you do to feel more hopeful about buying a home? Pick the right loan advisor, like us. Our team at PRMI is here with a Hail Mary pass in the last seconds of the game to get you to the finish line. We have hundreds of loan options to help you become a homeowner and gain a competitive rate. With our help, you don’t have to sit on the sidelines of the real estate game anymore and hope you’ll get a chance to play. We’re going to put you in the game, and you’re going to win!