What Lower KC Mortgage Rates Mean for Your Purchasing Power
Are you looking to purchase a Kansas City home? Knowing how current mortgage rates will impact affordability and monthly payments is crucial. Fortunately, rates for 30-year fixed mortgages have decreased significantly since the end of October. According to Freddie Mac, they currently sit at under 7% (see graph below):
This recent trend is GREAT news for interested home buyers! A recent article from Bankrate puts it this way:
“The rate cool-off somewhat eases the housing affordability squeeze.”
According to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):
“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”
How could this trend assist your plans to buy a Kansas City home? The Just Say Home Team has offered some insight and context below.
How Do Mortgage Rates Affect Your Search for a Home?
An essential part of your journey to Kansas City homeownership is understanding the connection between mortgage rates and monthly home payments. The chart below illustrates how your ability to afford a home adjusts as KC mortgage rates shift. To demonstrate this, imagine your budget allowing a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):
Even the smallest of rate changes can affect your budget and the loan amount you can afford.
Reliable Experts To Help You Understand Your Budget and Plan Ahead
When beginning the process of buying a home, guidance from a Just Say Home real estate agent and a trusted lender can help you explore different mortgage options and understand the factors behind Kansas City mortgage rates increasing and decreasing. Furthermore, these KC experts can share their knowledge and expertise on how these changes impact you.
The Just Say Home Team will help you prepare to buy a home by studying the latest data together. They will work with you to adjust your strategy based on the current Kansas City housing market rates.
The recent downward trend in mortgage rates is GREAT news for current Kansas City homebuyers! The Just Say Home Team is filled with trusted real estate experts who will help you understand your budget and the current KC housing market to plan your next steps.