Rate Drop!
Mortgage rates continue to tick down gradually which is positive news for homebuyers looking to accomplish the American dream in 2023! Mortgage rates most closely affect the monthly payment but there are a few other aspects to consider when we see rates drop like this. The biggest is most certainly buying power! Lower rates give you more buying power! Buying power is how much home you can afford based on your budget. Look at it this way – the average 30 year rate was 7% when they peaked in early November and it’s now 6.3%. Let’s say your mortgage payment budget is 3000 per month. In November, you could likely afford a loan amount of $450k. But now just one month later, the same payment would allow a loan of $485k. Now you’re not buying a loan – your buying a home. This rate drop can help you buy a superior home on the same budget. This could be difference between settling for a house and buying the home you’re proud of. Take advantage!