Interest rates continue to climb. The rate on a 30 year fixed as of July 8th was 6.4%. In comparison, rates were in the mid fours four months ago.
So what does that mean if you are pre-approved? It means you need to contact your loan officer and adjust that pre-approval letter.
With interest rates soaring, it will impact your buying power. What you could afford in March April or May might not be affordable anymore. A higher interest rate impacts your down payment and your offer. It changes your price point. So before you go to any open houses this weekend, contact your loan officer.
Despite the rising interest rates, it is still a good time to buy. Do not wait. The NAR predicts that housing prices will go up 5% in 2023. If you are waiting for that decline in prices, it is not happening. You will see the occasional price adjustment but homes are still going for asking or more.
Understanding your debt to income ratio and updating your pre-approval letter are vitally important right now. Managing your finances as a buyer has never been more important.
Rising interest rates may change your price point or what you are looking for, but if you can afford a home you should still stay in the market.