Thinking about buying a home? Let’s talk mortgage rates

By Patty Pound,  Broker-In-Charge / Co-Owner of Pound Real Estate Partners, LLC

If you’ve been thinking about buying a home, you’ve probably wondered, “Should I buy now or wait for mortgage rates to come down?”

It’s a fair question. Your interest rate affects your monthly payment, and even a small difference can matter when you’re working with a budget.

With the November elections coming up, you may also be wondering whether rates will change afterward. There’s plenty to think about, but you don’t need to be an economist to start making a plan.

Where are the rates right now?

According to Freddie Mac, the national average for a 30-year fixed mortgage was 7.40% on October 15. That doesn’t mean everyone will get that rate. Your credit score, down payment, type of loan, and choice of lender can all affect what you’re offered.

That’s why talking with a lender is more helpful than relying on a headline or something a friend was quoted. You need to know what the numbers look like for you.

Will rates go down after the election? 

They might, but there’s no guarantee.

Elections can affect how financial markets feel about the economy and what may happen next. But an election result doesn’t automatically make mortgage rates go up or down. Inflation, jobs, and the overall economy matter, too.

I would be careful about putting your plans on hold simply because you expect rates to drop after November. No one can promise that will happen.

Look at the whole monthly payment

When you’re buying a home, the mortgage payment is only part of the expense.

You’ll also want to consider property taxes, homeowners insurance, any flood insurance, HOA fees, and the cost of taking care of the home.

The important question is: Can you comfortably afford the total payment and still have room for everyday life and unexpected expenses?

Getting approved for a certain amount doesn’t mean you have to spend that much.

Does waiting make sense?

Sometimes, absolutely.

If waiting gives you time to save more money, pay down debt, or get a better idea of what you want, that can be a good decision.

But if you’re financially ready and find a home that fits your needs and budget, it’s worth looking at the actual numbers before deciding you have to wait.

Trying to pick the perfect time can be frustrating. Rates can change, and so can home prices and the selection of homes available.

Be careful about counting on refinancing

You may hear, “Buy now and refinance later.”

That could become an option, but it shouldn’t be the reason you agree to a payment that already feels too high. Refinancing costs money, and you’ll need to qualify when the time comes.

Make sure you’re comfortable with the payment you’re signing up for today.

Start with a conversation

You don’t have to be ready to make an offer to begin asking questions.

A lender can help you understand your financing options, and we can help you explore what’s available here in Georgetown or beyond.

Whether your next move is across town, into a smaller home, or into your very first home, having a clear picture of your options can make the decision feel a lot less overwhelming.

About the Author

Patty K. Pound, Broker-In-Charge and Co-Owner of Pound Real Estate Partners, LLC, is a licensed REALTOR® specializing in single-family residential and income properties throughout South Carolina. Holding advanced designations including SRS, ABR, and CREN, she holds a Master’s in Media Arts and is also a Master Photographer. Dedicated to exceptional service, Patty takes pride in seamlessly guiding buyers and sellers through every stage of their real estate journey.