Don’t be spooked by interest rates this October

Oct 13

There’ s no doubt that rising interest rates are the biggest thing Atlanta homebuyers are talking about this fall. But I’m here to break it down for you. Here are some things to think about if you’re considering making a home purchase in the Atlanta area before 2023.

Number 1:
An increase in rates will cost you more, but it may not be as much as you think.

Example: A $300,000 loan with a 5% fixed rate comes out to roughly $1,610 a month. A $300,000 loan with a 6.5% fixed rate? $1,896 a month - a difference of $286. This illustration also shows my biggest piece of advice: focus on the monthly payment more than the interest rate. Having a comfortable monthly mortgage + property tax payment is really the piece that matters the most.

Number 2:
Mortgage rates are still low compared to the rates from the last 40 years. Consider October 1981. The 30-year mortgage rate was 18.45%. Now, that's something to fear! The rates in the 2%-3% range were pretty unusual, and we may never see them again, or at least for some time.

Number 3:
Few people are selling, and there just aren’t enough houses to go around—and it’s going to be a while before builders can catch up. Translation: Buying isn’t going to get dramatically cheaper anytime soon.

If you were ready to buy before rates crept upwards, don’t let today’s numbers derail your plans. Instead, revisit the numbers, widen your search, and consider new construction.

I’m here if you’d like to chat more about buying this fall. Shoot me a message, and let’s talk about strategies to get you in your next home by the end of the year.