Here’s a recent sensational real estate news report: interest rates went up to 7.1%. However, before you worry about this increase, there are a few things you need to know.

First, it's important to understand how the news reports daily and shows rates as an average. They take into account factors such as the average credit score, down payment, and the type of loan (FHA, conventional, primary, or secondary). They can't consider your individual circumstances. 

In reality, interest rates are determined based on factors like credit score, debt-to-income ratio, and the type of loan. In the past week, we have been locking people in at rates ranging from 5.6% to 5.9%. If you have an excellent credit score and you’re purchasing a primary home, you’re most likely to be in the 5% range. 

"The truth is that the news reports interest rates as an average."

When the average rate falls back into the 5% range, we can expect a surge of buyers entering the market, leading to a highly competitive situation. Therefore, if you are considering buying a home but waiting for rates to go down, you need to weigh your options. Will you wait for rates to decrease and potentially pay a higher price for the property? Or would you rather buy now with today's higher interest rates but take advantage of the current lower prices? It's a decision worth considering. 

If you need help with your real estate decisions or anything else, call or email us. We’re always happy to help!