The Truth About 3% Interest Rates
If you’ve been holding off on buying a home in hopes that mortgage rates will drop back down to 3%, you’re definitely not alone. It’s a tempting idea—who wouldn’t want a lower rate and smaller monthly payment? As real estate agents and mortgage professionals, we hear everyday about how our community members are waiting for the rates to drop back down to Covid rates.
But here’s the reality about mortgage rates:
Ultra-low interest rates like that weren’t the norm. They were a product of a once-in-a-lifetime global event that triggered emergency economic measures. While we all appreciated those historically low mortgage rates while they lasted, it’s important to understand that they came with a unique set of circumstances that aren’t likely to repeat any time soon. We're not saying never, but not for any time in the near future.
Even if mortgage rates did dip that low again, consider what would happen. Buyers would flood back into the home buying market, driving up demand for homes for sale. Home buying competition would heat up quickly, housing inventory would shrink, and home prices could rise just like they did during the last housing boom.
That kind of environment can be just as challenging—if not more so—than navigating today’s mortgage rates.
Here’s the good news about getting a mortgage:
You don’t need to wait for perfect market conditions to make a smart move. Instead of focusing on what you can’t control (like interest rate predictions), focus on what you can:
● Knowing your homebuying budget and sticking to it
● Finding the right home that fits your needs, that's within your homebuying budget
● Working with a knowledgeable local
REALTOR who can help you negotiate the best possible terms on the home you want
Sometimes, waiting can end up costing more—both in time and money—than moving forward with a solid home buying strategy today.
Curious about what today’s numbers would look like for your situation?
The Zack Grimmer Group, Powered by Real, is a Residential & Commercial Real Estate and Mortgage Team that was founded in 2021 by Zachary ‘Zack’ Grimmer. We assist our clients who are looking to BUY, RENT, SELL or INVEST in real estate throughout Pennsylvania, New Jersey and Florida! We are tech-enabled and data-driven, giving our team the necessary tools to successfully broker real estate in any market. Our mission is to provide white-glove service to our clients and investors. Browse our website at www.ZackGrimmerGroup.com to learn more about all the real estate services we offer to our community.
Please feel free to contact us at admin@ZackGrimmerGroup.com or 215-279-8519 or follow us on Facebook & Instagram, to learn more.
