Interest Rates Have Gone Up, Should I Wait?

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In August of 2020 we experienced a low rate market in which the monthly average commitment rate for a 30-year fixed loan dropped below 3% and continued there for 16 months. The last four months we have seen those rates creep up to and pass 5%. An increase like this will make a difference in your max budget, but this should not discourage you from becoming a homebuyer, and here is why…


Rates, historically, have been higher than they are today. ( particularly two to three times higher in the late 70’s and 80’s.)

It is nearly impossible to know exactly where rates will land in the future so it is important to spend less time guessing and more time positioning yourself in the current market.


You can avoid overextending yourself by knowing your budget. Set a range that is flexible. If rates increase, you can find more than one type of home that fits your needs. The following ranges can be taken for example, ($1,000-$1,500/ $2,000-$2,500/ $3,000-$3,500)


Finding a home you can afford, allows you to build equity comfortably; if rates drop in the future, you can refinance and build equity at a faster pace. Homeownership is more than finding incredible deals the first time around. Putting yourself in position to build equity now can set you up for incredible deals in the future.


For more information on fixed-rate mortgage tables, please see the primary mortgage survey data at

Norman Hardman

Prestige Property Brokers

Licensed Realtor in GA & AL