by Don Conwell
Senior Mortgage Advisor, First United Mortgage

There is no question that mortgage rates matter.

The approximate 1% increase in mortgage rates we’ve seen since March can have a meaningful impact on a homebuyer’s monthly payment—and therefore on purchasing power. Depending on the loan amount, taxes, insurance and other factors, my calculations show that a buyer may need to reduce their purchase price by 7.5% to 10% to maintain the same monthly payment.

That’s significant. But there is a danger in allowing interest rates to become the entire conversation.

I’ve spent more than 23 years in the mortgage industry, and one thing I’ve learned is that there is rarely a perfect time to buy a home. Rates move. Home prices move. Inventory changes. The economy changes. Trying to perfectly time all those things can leave you sitting on the sidelines for a very long time.

The better question is: Is this the right time in your life to buy a home?

Maybe you’re getting married, having another child, or relocating. Maybe you need more space. Maybe you’re tired of renting. Or maybe you’ve reached a point financially where owning a home simply makes sense.

If those things are true, I wouldn’t automatically stop looking because rates moved higher.

Instead, I would adjust the strategy.

That might mean changing the price range, increasing the down payment, negotiating seller concessions, or simply deciding that the right answer is to wait. A good mortgage strategy isn’t about finding a way to make every purchase work. Sometimes good advice means saying, “This doesn’t make sense yet.”

And I believe buyers should make their decision assuming today’s rate and payment are the ones they’ll be living with long term. I’m uncomfortable with any strategy that requires rates to fall later for the home to become affordable. Refinancing should be a future opportunity, not part of the justification for buying the home today.

Could rates decline? Absolutely. They could also stay where they are or move higher. None of us knows.

But there’s another side to waiting. If rates decline in the future, the home you want in the neighborhood you want, at a price that works for you, may no longer be available. Lower rates can also bring more buyers back into the market, potentially changing competition and prices.

That doesn’t mean you should buy because you’re afraid of missing out. It means there is a cost to waiting, just as there can be a cost to acting now. Both deserve to be considered.

The financial decisions you make when buying a home can touch nearly every area of your life. That’s why I believe the conversation should be bigger than, “What’s the rate?”

Understand the numbers. Understand the tradeoffs. Make sure the payment works today. Then make the decision that best supports the life you’re trying to live.

Call me, Don Conwell, First United Mortgage, when you’re ready to have that conversation.