We have witnessed significant improvements in mortgage rates as the resolution of the debt ceiling becomes inevitable. This development raises a question previously posed regarding the difference in house payments between a 3.5% 30-year mortgage and mortgages with rates of 6.5% and 5.0%.

Comparatively, a 6.5% mortgage results in a 30% higher total payment, while surprisingly, a 5.0% mortgage leads to only a 15% increase. This difference is viewed as the tipping point for borrowers who are constrained by interest rates.

With these changes on the horizon, it is crucial to be prepared. We encourage you to reach out to us or your lender and get pre-approved. Obtain a fully underwritten file to address any minor issues that may arise.

As I am currently traveling this week, I came across an intriguing graph that I wanted to share with you. It’s quite fascinating! Have a fantastic rest of the week.