What To Do When Interest Rates Change
If you're considering buying a home, you’ve probably noticed how often interest rates make the headlines. Maybe you're wondering: Should I wait until they drop? Should I hurry before they rise again? Will I still be able to afford a home if rates go higher?
These are important questions, and you're not alone in asking them. But the truth is, trying to “time” the interest rate market is nearly impossible. Instead, the most empowering thing you can do is understand how interest rates actually impact your finances, and what to focus on to make a smart decision that works for you.
Why Timing the Market Doesn’t Work
It's tempting to think you should wait until interest rates drop to buy a home. But predicting when rates will rise or fall is incredibly difficult, even for the experts. Rates are influenced by global economics, inflation, government policy, and more. They can shift week to week or even day to day. Trying to wait for the “perfect” rate often leads to missed opportunities, especially if home prices or competition increase in the meantime.
Instead of chasing the market, a smarter approach is to:
- Know what you can afford now based on your income, expenses, and comfort level.
- Get pre-approved so you can shop with confidence and move quickly when the right home comes along.
- Refinance later if and when interest rates fall — a common strategy many homeowners use.
Remember, buying a home is about long-term stability, not short-term guessing games.
Owning a Home Can Protect You From Rising Rent Costs
While a mortgage payment may seem higher than rent at first glance, it offers something rent doesn’t: predictability. With a fixed-rate mortgage, your monthly payment stays the same year after year. Rent, on the other hand, typically increases annually. Over time, it’s very possible that a mortgage becomes less expensive than renting. especially when you consider inflation. In that sense, homeownership can actually protect you from rising housing costs in the future.
So, What Should You Do Next?
Whether rates are up, down, or in between, your best move is to be informed and ready. That means understanding:
- What your current buying power looks like
- What kind of monthly payment feels sustainable
- What loan programs or down payment help you may qualify for
- What steps you can take now to improve your financial position
A Smart Way to Start
Your Employee Homeownership Program offers free homeownership financial planning consultations designed to help you make sense of all of this. From understanding current rates to exploring programs that could lower your costs, they’ll help you map out a plan based on your goals and circumstances.
Take the pressure off. Be informed. Be ready.
Schedule your free homeownership planning session today through your employee benefit, and take control of your next step.
SupportSquad@AdvantageHomePlus.com | (800)511-2197
The information contained and the opinions expressed in this article are not intended to be construed as investment advice. Advantage Home Plus does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. * Real estate commission contributions are available as state laws allow.
Category: Homebuyers Mortgage Rates
