Mortgage rates have steadily risen over the last few weeks, leading many potential homebuyers to pause their search. While it is understandable to be concerned about higher rates, this could actually be an opportunity to buy the home you’ve been searching for. Fewer buyers in the market could mean less competition for you when shopping for a home. Let’s look at what this means and how you can capitalize on this situation.
According to the Mortgage Bankers Association (MBA), mortgage applications declined by 13.3% in just one week due to rising mortgage rates. While rising rates are causing some potential buyers to step back from their search for a new home, those who stay the course will likely face less competition when looking for a house.
The current market has so few homes available that any reduction in competition can be a big benefit for buyers. Less competition means more bargaining power, as sellers may have fewer options for finding potential buyers who meet their criteria and have already been approved for a loan. As such, they may be more willing to negotiate on price or terms than before.
Furthermore, if you're already pre-approved, moving forward with your purchase will become easier and faster since fewer offers will come through on each property listed.
One thing that all buyers should keep in mind is that if you’re looking for a certain type of loan (like an adjustable rate mortgage or ARM), it might not make sense anymore because these types of loans are directly affected by changes in interest rates. That said, fixed-rate mortgages remain attractive even with higher interest rates since their payments remain unchanged throughout the life of the loan, regardless of changes in interest rates over time.
Rising mortgage rates don’t necessarily mean that you need to delay your plans to buy a home – there are opportunities here too! If you stay focused and opportunistic, you can negotiate with less competition while still getting favorable terms and prices due to current market conditions caused by rising interest rates and low inventory levels nationwide.
Knowing what type of loan is right for your circumstances is also key here; fixed-rate mortgages remain attractive even with higher interest rates, so they should definitely be considered when searching for financing options.
When done right, rising mortgage rates can result in an opportunity rather than an obstacle!
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 235072
2542 S Bascom Avenue Suite 185
Campbell, CA 95008
Phone: (408) 402-5770
Affinity Mortgage strives to ensure that its services are accessible to people with disabilities. Affinity Mortgage has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Affinity Mortgage makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows caliloanpro.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Affinity Mortgage accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Affinity Mortgage continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Affinity Mortgage website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Affinity Mortgage website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Chris_j@ouraffinity.com