[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f1gyysyzkj37g0":3,"$ffeh0925h8cuz":51,"$fbwk2pqjjqsc7":55},{"item":4,"previous":39,"next":45},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":37,"updatedAt":38},1851,"how-a-change-in-mortgage-rate-impacts-your-homebuying-budget","How a Change in Mortgage Rate Impacts Your Homebuying Budget","Mortgage rates are on the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F03\u002F09\u002Fhow-upset-should-you-be-about-3-mortgage-rates\u002F\">rise\u003C\u002Fa> this year, but they’re still incredibly low compared to the historic \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F02\u002F19\u002Fhome-mortgage-rates-by-decade-infographic\u002F\">average\u003C\u002Fa>. However, anytime there’s a change in the mortgage rate, it affects what you can afford to borrow when you’re buying a home. As Sam Khater, \u003Cem>Chief Economist\u003C\u002Fem> at \u003Cem>Freddie Mac\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Ffreddiemac.gcs-web.com\u002Fnode\u002F22396\u002Fpdf\">shares\u003C\u002Fa>:","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F29130507\u002F20210330-KCM-Share.jpg","Mortgage rates are on the \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F03\u002F09\u002Fhow-upset-should-you-be-about-3-mortgage-rates\u002F\">rise\u003C\u002Fa> this year, but they’re still incredibly low compared to the historic \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F02\u002F19\u002Fhome-mortgage-rates-by-decade-infographic\u002F\">average\u003C\u002Fa>. However, anytime there’s a change in the mortgage rate, it affects what you can afford to borrow when you’re buying a home. As Sam Khater, \u003Cem>Chief Economist\u003C\u002Fem> at \u003Cem>Freddie Mac\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Ffreddiemac.gcs-web.com\u002Fnode\u002F22396\u002Fpdf\">shares\u003C\u002Fa>:\u003C!--more-->\r\n\u003Cblockquote>\u003Cem>“\u003Cstrong>Since January, mortgage rates have increased half a percentage point\u003C\u002Fstrong> from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power.” (See graph below):\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210330-MEM-Eng-1.png\">\u003Cimg class=\"aligncenter wp-image-44103\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210330-MEM-Eng-1.png\" alt=\"How a Change in Mortgage Rate Impacts Your Homebuying Budget | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>When buying a home, it’s important to determine a monthly budget so you can plan for and understand what you can \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F02\u002F11\u002F47-of-new-buyers-surprised-by-how-affordable-homes-are-today\u002F\">afford\u003C\u002Fa>. However, when you need to stick to your budget, even a small increase in the mortgage rate can make a big difference.\r\n\r\nAccording to the \u003Cem>National Association of Realtors\u003C\u002Fem> (NAR), today, the median existing-home price is \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fnewsroom\u002Fexisting-home-sales-descend-6-6-in-february\">$313,000\u003C\u002Fa>. Using $300,000 as a simple number close to the median \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F03\u002F24\u002Fwhy-you-should-think-about-listing-prices-like-an-auctions-reserve-price\u002F\">price\u003C\u002Fa>, here’s an example of how a change in mortgage rate impacts your monthly principal and interest payments on a home.\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210330-MEM-Eng-2.png\">\u003Cimg class=\"aligncenter wp-image-44102\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210330-MEM-Eng-2.png\" alt=\"How a Change in Mortgage Rate Impacts Your Homebuying Budget | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>If, for example, you’re getting ready to buy a home and know your budget allows for a monthly payment of $1200-1250 (marked in gray on the table above), every time the mortgage rate \u003Cstrong>\u003Cem>increases\u003C\u002Fem>\u003C\u002Fstrong>, the loan amount has to \u003Cstrong>\u003Cem>decrease\u003C\u002Fem>\u003C\u002Fstrong> to keep your monthly cost in range. This means you may have to look for lower-priced homes as mortgage rates go up if you want to be able to maintain your budget.\r\n\r\nIn essence, it’s ideal to close on a home loan when mortgage rates are low, so you can afford to borrow more money. This gives you more purchasing power when you buy a home. Mark Fleming, \u003Cem>Chief Economist\u003C\u002Fem> at \u003Cem>First American\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Fblog.firstam.com\u002Feconomics\u002Fthe-good-the-bad-and-the-maybe-ahead-of-spring-home-buying\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Monthly payments have remained manageable despite soaring home prices because of \u003Cstrong>low mortgage rates\u003C\u002Fstrong>. In fact, monthly payments remain below the $1,250 to $1,260 range that we saw in both fall 2018 and spring 2019, but they are on track to hit that level this spring. \u003C\u002Fem>\r\n\r\n\u003Cem>Although they remain low\u003Cstrong>, mortgage rates have begun to increase and are expected to rise further later in the year\u003C\u002Fstrong>, thus affordability will test buyer demand in the months ahead and likely help slow the pace of price growth.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nToday’s mortgage rates are still very low, but experts \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F02\u002F18\u002Fwill-low-mortgage-rates-continue-through-2021\u002F\">project\u003C\u002Fa> they’ll continue to rise modestly this year. As a result, every moment counts for homebuyers who want to secure the lowest mortgage rate they can in order to be able to afford the home of their dreams.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nThanks to low mortgage rates, the spring housing market's in bloom for buyers – but these favorable conditions may not last for long. Let’s connect today to start the homebuying process while your purchasing power is still holding strong.","\r\nThanks to low mortgage rates, the spring housing market's in bloom for buyers – but these favorable conditions may not last for long. Let’s connect today to start the homebuying process while your purchasing power is still holding strong.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210330-MEM-Eng-1.png",false,[17,21,25,29,33],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},9,"Home Prices","home-prices",{"id":26,"name":27,"slug":28},11,"First-Time Buyers","first-time-buyers",{"id":30,"name":31,"slug":32},35,"Mortgage Rates","mortgage-rates",{"id":34,"name":35,"slug":36},38,"Move-Up","move-up","2021-03-30T10:00:40Z","2021-03-30T10:00:41Z",{"id":40,"slug":41,"title":42,"featuredImage":43,"publishedAt":44,"contentType":10,"isVideo":15},1850,"what-it-means-to-be-in-a-sellers-market","What It Means To Be in a Sellers’ Market","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F23170725\u002F20210329-KCM-Share.jpg","2021-03-29T10:00:45Z",{"id":46,"slug":47,"title":48,"featuredImage":49,"publishedAt":50,"contentType":10,"isVideo":15},1852,"is-homeownership-still-considered-part-of-the-american-dream","Is Homeownership Still Considered Part of the American Dream?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F30145440\u002F20210331-KCM-Share.jpg","2021-03-31T10:00:23Z",{"cover":52,"open":53,"shareSpread":54},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[56,60,61,65,69,73,74,75,79,80,81,85,89,93,97,101,105,109,113,117,121,125,129,133,137,141,145,149,153,157],{"id":57,"name":58,"slug":59},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":62,"name":63,"slug":64},6,"For Sellers","sellers",{"id":66,"name":67,"slug":68},7,"Foreclosures","foreclosures",{"id":70,"name":71,"slug":72},8,"Infographics","infographics",{"id":22,"name":23,"slug":24},{"id":26,"name":27,"slug":28},{"id":76,"name":77,"slug":78},34,"Senior Market","senior-market",{"id":30,"name":31,"slug":32},{"id":34,"name":35,"slug":36},{"id":82,"name":83,"slug":84},41,"For Sale by Owner","for-sale-by-owner",{"id":86,"name":87,"slug":88},42,"Featured","featured",{"id":90,"name":91,"slug":92},45,"New Construction","new-construction",{"id":94,"name":95,"slug":96},52,"Luxury \u002F Vacation","luxury--vacation",{"id":98,"name":99,"slug":100},53,"Rent vs. Buy","rent-vs-buy",{"id":102,"name":103,"slug":104},80,"Time-sensitive","time-sensitive",{"id":106,"name":107,"slug":108},81,"Outdated","outdated",{"id":110,"name":111,"slug":112},147,"Internal","internal",{"id":114,"name":115,"slug":116},148,"Do Not Autopost","do-not-autopost",{"id":118,"name":119,"slug":120},320,"Inventory","inventory",{"id":122,"name":123,"slug":124},321,"Agent Value","agent-value",{"id":126,"name":127,"slug":128},322,"Affordability","affordability",{"id":130,"name":131,"slug":132},323,"Buying Tips","buying-tips",{"id":134,"name":135,"slug":136},324,"Downsize","downsize",{"id":138,"name":139,"slug":140},325,"Economy","economy",{"id":142,"name":143,"slug":144},326,"Equity","equity",{"id":146,"name":147,"slug":148},327,"Forecasts","forecasts",{"id":150,"name":151,"slug":152},328,"Selling Tips","selling-tips",{"id":154,"name":155,"slug":156},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":158,"name":159,"slug":160},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]