The Sky Team: We specialize in listing, sales, senior housing counseling, pre-foreclosure, probate, divorce, bankruptcy, short sales, tax delinquencies, vacant homes, and real estate investments.

How Mortgage Rates Impact Your Approval And Home Buying Power In Roseburg OR

If you want to buy a home in Roseburg, knowing how mortgage rates impact your approval, buying power, and how much you’ll pay each month is important. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently averaging under 7%, according to Freddie Mac.

Good news if you’re buying a home! The recent downward trend is great news for homebuyers. In a recent article, Bankrate says:

“The rate cool-off somewhat eases the housing affordability squeeze.”


And according to one real estate expert, Edward Seiler, the 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 . . .”

So, how can this help you with your plans to buy a home in Douglas County OR?

How Mortgage Rates Affect Your Search for a Home

Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to become a homeowner. A good real estate agent should go through this kind of information with you as one of your first steps when buying a house.

To help clarify, the chart below illustrates how your ability to afford a home changes as mortgage rates shift. In this scenario, we’ll assume your monthly budget allows for a payment of about $2,500. The green part in the chart shows payments in that range or lower…

As you can see, even small changes in a rate can affect your budget, the loan amount, and how much home you can afford. Many factors determine whether rates go up or down, so if you have questions, ask. It is good to understand this information when buying a home in Roseburg or deciding if the timing is right for you.

7% mortgage rate is below the historic average.

My advice… If it’s the right home and you can afford the payments, buy it. If rates come down, you can refinance, but if rates go up, you’ll be glad you locked in a lower rate.

Should You Get Help from A Reliable Expert To Understand Your Budget?

When you’re buying a home in Roseburg OR, the best thing you can do is ask for help. Contact an experienced real estate broker and a reliable mortgage lender. You’ll find that the guidance and advice you get from them proves to be valuable.

Both should have knowledge and opinions about different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you. If you have questions about this, send me an email here.

I’d love to chat with you about the numbers and the latest data together and help you adjust your strategy based on today’s market and today’s rates. Let’s ensure you’re prepared and ready to buy a home in Roseburg OR.

Bottom Line

If you’re looking to buy a home, you should know the recent downward trend in mortgage rates is good news for your move. Let’s connect and plan your next steps. 541-643-1131

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