How to Approach Rising Mortgage Rates as a Home Buyer in Idaho

The average 30-year fixed mortgage rate from Freddie Mac has inched up to 5% in the last few weeks alone. That might sound like daunting news, but rest assured: the right time for your home search in Idaho is now. You might be inclined to put your home-buying dreams on hold, waiting for the rates to fall, but waiting is only going to end up costing you more. Mortgage rates are expected to keep rising in the next year.

If you’re thinking of buying a home in Idaho, keep a few things in mind so you can succeed, even as mortgage rates rise. 

How Rising Mortgage Rates Impact You

Mortgage rates play a significant role in your Idaho home search. When rates increase, so does the amount of your monthly mortgage payment; your home buying ability will be directly affected by how much you can comfortably afford.

The chart below is an example of the big impact even a quarter-point increase in mortgage rates can have on your monthly payment:

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With these recent increases in mortgage rates, it’s likely that you have already noticed an impact on your purchasing power. Instead of delaying your plans to buy a home in Idaho, today’s rising rates should motivate you to purchase now before mortgage rates increase even more. Use this motivation to fuel your Idaho home search and plan the appropriate next steps accordingly.

The number one way to prepare for your home search is to work with a trusted Idaho real estate advisor now. An agent can connect you with a trusted lender, help you fine tune your home search according to your specific budget, and help you be ready to act quickly when the time comes to make an offer on the Idaho home of your dreams.

Bottom Line
Buyers who are serious about finding their Idaho home should use the recent increases in mortgage rates as extra motivation to buy sooner, instead of as a reason to wait. Waiting to purchase will only cost you more in the long run, as rates are expected to continue rising. Work with an Idaho real estate professional to understand your budget and purchasing power, and how you can be best prepared to buy your new home in Idaho before mortgage rates climb even higher.