Now is a Great Time to Buy a Home, Despite Rising Rates

Are you dragging your feet to buy a home on the Mississippi Gulf Coast because of the rising interest rates? Now may be the perfect time for you to lock in your rate and make a purchase. 

During the COVID-19 pandemic, our country experienced record low mortgage rates and many Americans had unprecedented opportunities for affordable home loans. After almost three years of historically low mortgage rates, as mortgage rates inch upwards people are beginning to wonder if buying now is a good idea. As rates approach the pre-pandemic levels, they still remain low. 

Despite the pessimism some prospective buyers may feel about rising rates, it’s important to look at them from a historical perspective. While the rise in rates may be shocking to buyers, they’re still low compared to years past. According to the St. Louis Fed rates were in the low 7 percent range in the early 1970s and rose steadily in the early 1980s, peaking at more than 18 percent. They did not fall back under 6 percent until the early 2000s. 

While interest rates have increased by more than two percentage points this year, today’s mortgage rates are higher than they were at this time last year, they are still extremely low by historical standards when you look at the big picture and rates of the 1980s and 90s.  Rates are expected to rise moderately in the coming months. By purchasing now rather than later, you can lock in at current rates before they rise further. 

Locking now in with a lower rate will save you money on your monthly mortgage payment, and securing a fixed-rate mortgage helps ensure the largest portion of your housing expense remains the same. Property taxes and insurance costs will likely fluctuate and impact your payment some, but the bulk of your monthly payment will be stable throughout the course of your loan, no matter what happens with interest rates going forward. 

There are always more components involved in the decision to purchase a home, aside from interest rates, but they are still low enough to be considered favorable for long-time investments and building equity. The value of homes has steadily increased on the Gulf Coast while other parts of the country have started to cool. In April 2022, fewer homes were available for sale in our communities from the previous month, as well as the year before. And homes continued to sell quickly and for a higher average sales price than this time last year.

 

The Bottom Line
If you are financially ready, this may be the perfect time to buy the home of your dreams on the Mississippi Gulf Coast! Don’t be afraid of slight increases to interest rates, you could be missing out on an opportunity. There is no guarantee when, or if, rates will fall as low as they were during the pandemic, and if you’re choosing to wait for a decline you could be missing out on an opportunity by delaying your purchase. Property values could also rise, making your delayed decision ever more expensive. Home ownership is an investment that can help you build wealth, act now to take advantage of the still low rates.  

Contact a trusted real estate agent at Expect Realty to see if now is the right time for you to purchase a home. Expect Realty agents are some of the best REALTORS® in Mississippi and are experts at guiding clients through the process of home buying in Gulfport, Biloxi, Ocean Springs, Long Beach or any of our other coastal communities. Contact us today at 228.215.1861 or expectmore@expectreatlty.com.