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Wait or Buy Home Now As Mortgage Rates Inch Up?

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Real Estate Agent with HomeSmart Real Estate BR632450000

Should you WAIT and try to "time the market" or buy a home NOW. Are you tempted to buy later if mortgage rates come down? This is always a difficult decision especially when life is drawing you to buy a home. (Wait photo: Engen_Ayurt, Pixabay)

There may be a window of opportunity to own a home in the Phoenix Arizona metro now with home prices having declined somewhat while mortgage rates are inching up with inflation. Remember, you can marry the home of your dreams but only have to date the mortgage rate. One can date the rate by refinancing later when rates decrease. Over the past 100+ years home prices have gone up and down through the decades but the overall trend is up....WAY UP! As your parents likely did, YOUR home will increase in value as you also build equity. Renting? There is no equity accumulation.

Freddie Mac Report 8-17-23 Mortgage Rates Jump, Inching above Seven Percent

"MCLEAN, Va., Aug. 17, 2023 (Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.09 percent, reaching its highest level in over twenty years.

“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s Chief Economist. “The last time the 30-year fixed-rate mortgage exceeded seven percent was last November. Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.”

Weekly Mortgage Rate Survey

News Facts

"30-year fixed-rate mortgage averaged 7.09 percent as of August 17, 2023, up from last week when it averaged 6.96 percent. A year ago at this time, the 30-year FRM averaged 5.13 percent.

15-year fixed-rate mortgage averaged 6.46 percent, up from last week when it averaged 6.34 percent. A year ago at this time, the 15-year FRM averaged 4.55 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. 

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home."

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Posted by

Jeff Masich

Broker/REALTOR®

Scottsdale including Phoenix, Tucson and Prescott metros and throughout Arizona


Buy/Sell with Arizona Homes and Land Group. Ask me, Group Leader about Metro Homes or Ranches and Large Acreage properties throughout the state.

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Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

This is a question many buyers are asking themselves …… as they watch the mortgage interest rates rise.

Aug 20, 2023 10:56 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

You have to live somewhere.  Pay a landlord's mortgage or pay your own. Bill 

Aug 20, 2023 11:11 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI around here home prices and mortgage interest rates are still going up with NO sign of that changing anytime soon.  Any Buyer who is waiting for either one to come down has a long and costly wait.  Not a wise decision.

Aug 20, 2023 11:20 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Jeff, great information!!!

“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s Chief Economist. “The last time the 30-year fixed-rate mortgage exceeded seven percent was last November. Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.

Aug 20, 2023 12:01 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Rosalind Nicholas yes it sure is a popular question. Trying to time the market is VERY difficult. One thing is a proven though is that real estate prices will go UP if you plan to live a home. Proven over the past 120 years. Trying to time it for next year or two? That is not easy to do. Jeff

Aug 20, 2023 02:46 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hey Bill Salvatore - East Valley yes you are right on. Why pay the Landlord to pay his own mortgage when you could be paying your own. If mortgage rates do come down one can refinance. However, if one waits for the lower mortgage what will home prices be at that time. Jeff

Aug 20, 2023 02:48 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hey George Souto you and I are on the "same page" with your thoughts. Waiting is not going to do a bit of good. One can always refinance the mortgage if rates do come down eventually. How many years in the future will that be and where will home prices be when they do. 

Aug 20, 2023 02:50 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Sham Reddy CRS, yes mortgage average rates at 7.09% were above 7% highest since last November as you say, but also at the highest in 20 years per the Freddie Mac mortgage survey for week ending August 17. The good thing is that a buyer can date the rates and refinance to another one when rates come down. One cannot date the home purchase price. It is what it is. Jeff

Aug 20, 2023 02:54 PM