ARKANSAS, USA — The COVID-19 pandemic did a number on the housing market, and ever since, experts have been keeping a close eye on the constant ups and downs, especially with mortgage rates.
“It’s been a focus because when rates got so low, it was just such hysteria,” Senior Mortgage Banker Mark Phillips said. “Everyone’s wanting to buy, everyone’s wanting to sell because the prices were going up. People could borrow money extremely cheap.”
However, that trend was short-lived as mortgage rates soared to a 21-year high in August.
Now, those rates are going down.
“Three weeks, a month ago, it was very easy for somebody to have an eight or maybe a little higher than that,” Phillips said. “Now we’re back down in that August to September range.”
Phillips said the rates are around 7%, which might not seem like a big jump from eight, but it makes a difference.
“It makes such a huge difference in affordability,” Phillips said. “The interest directly impacts your payment and your whole budget.”
According to Phillips, first-time home buyers should keep this in mind.
“There are so many different programs, but they may get a little bit of a lower rate as long as they fit within the certain boxes of those programs,” Phillips said. “It may require a certain downpayment.”
Real Estate Executive Broker Tamra McMahon agreed with Phillips.
“If it makes financial sense, and their monthly payments are where they need them to be, why not buy a house?” McMahon said.
McMahon said that these lower rates…