The Current Mortgage Market: What You Need to Know

Guest Blog Post

Courtesy of John Anthony
Branch Manager
Fairway Independent Mortgage

The Current Mortgage Market: What You Need to Know

The mortgage market is a complex and ever-changing landscape. For the average consumer, it can be difficult to keep up with the latest trends and developments. However, it is important to stay informed about the current mortgage market, as this information can significantly impact your ability to buy a home.

Here are some key things to know about the current mortgage market:

• Mortgage rates are rising. The average interest rate on a 30-year fixed mortgage is currently around 7%. This is up significantly from the lows of 2021, when rates were around 3%.

• Home prices are also rising. The median home price in the United States is now over $400,000. This is up significantly from just a few years ago.

• The combination of rising mortgage rates and home prices is making it more difficult for many people to afford to buy a home compared to just a few years ago. This trend may very well continue into the foreseeable future. Yet, there are things you can do to be prepared.

If you are thinking about buying a home, it is important to be aware of the current mortgage market conditions. You should also work with a qualified mortgage lender to get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much you can afford to spend and will make the home buying process go more smoothly.

Here are some tips for getting a mortgage in the current market:

• Get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much you can afford to spend and will make the home buying process go more smoothly. Do this first before searching for a home.  In fact, you should consider reaching out to your lender as far as a year in advance of buying. This will give you time to optimize your buying power.

• Work with a lender willing to fully underwrite your pre-approval in advance of finding a home. This will increase your odds of winning in a competitive situation and it furthers your confidence in getting to the closing table easily, once under contract.

• Ask questions of your lender. There are many programs available to help consumers become homeowners.  Make sure you and your lender have reviewed what is possible for your situation.

• Improve your credit score. A good credit score will qualify you for lower interest rates and better terms on your mortgage. Ask your lender for tips on what you can do.

• If you are 62 years old or older, consider researching how using a Reverse Mortgage can help you get into the home of your dreams.

• Values are on the rise, so waiting to buy may be counter-productive mathematically. Do not wait for rates to come back down…they may never come back down and even if they do, the increased cost due to higher values may offset the savings.

• If you have cash available, ask about buying out mortgage insurance. It could save you thousands in the long run.

Once you are approved, you should work with a highly qualified Realtor^®.  Your Realtor^® can make the difference between winning or not in a highly competitive market.

The Bottom Line

The current mortgage market is challenging, but it is still possible to buy a home. By following these tips, you can increase your chances of getting the mortgage that is right for you and buying the home of your dreams.

John Anthony, CMA
NMLS #50575
Branch Manager
Fairway Independent Mortgage

John is a 30+ year licensed professional and leader in the mortgage industry.  He can be reached at janthony@fairwaymc.com .  Click Here for his business card or copy and paste blinq.me/1X5Lhx5tsIXB