{"id":27394,"date":"2018-03-26T19:26:15","date_gmt":"2018-03-26T19:26:15","guid":{"rendered":"https:\/\/one.sightlinemg.com\/airforcetimes\/native\/uncategorized\/advice-for-homebuyers-on-mortgage-rates\/"},"modified":"2026-08-08T06:27:16","modified_gmt":"2026-08-08T06:27:16","slug":"advice-for-homebuyers-on-mortgage-rates","status":"publish","type":"native","link":"https:\/\/one.sightlinemg.com\/airforcetimes\/native\/navy-federal\/advice-for-homebuyers-on-mortgage-rates\/","title":{"rendered":"Advice for homebuyers on mortgage rates"},"content":{"rendered":"\n

Mortgage rates are on the rise and home prices are steadily climbing. Can you still hope find your dream home and afford it, too?<\/p>\n\n\n\n

The question is top of mind for service members changing station, or transitioning out of the military. First-time homebuyers are in the same boat. <\/p>\n\n\n\n

\u201cRates have been low for quite some time, and they\u2019re still low when you compare to historical averages,\u201d says Robert Frick, corporate economist at Navy Federal Credit Union. \u201cA smart homebuyer is much less concerned with rates. The real focus should be on landing a home without buying more house than you can afford.\u201d<\/p>\n\n\n

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Budget, price, or rate? What should you pay attention to when buying a house.<\/figcaption><\/figure>\n\n\n

Supply and Demand<\/b><\/p>\n\n\n\n

According to the National Association of Realtors<\/a>, the average home is on the market for only three weeks before it\u2019s sold. In major markets, homes sell even faster. Five years ago, homes lasted 11 weeks on the market. So, what\u2019s this mean for you?<\/p>\n\n\n\n

\u201cSupply is low, and has been for several years,\u201d says Frick. \u201cThis will continue because not enough new homes are being built, and those with existing homes are selling at a low rate. So, home buyers need a strategy to win a very competitive market.\u201d<\/p>\n\n\n\n

Some tips to guide your strategy: research your location of choice, know what you can afford and get pre-approval for a mortgage from your financial institution. Having a strong relationship with a lender you trust is key. They\u2019ll be able to provide you with guidance, a pre-approved mortgage and the information you need to act fast when it\u2019s time to make an offer.<\/p>\n\n\n\n

What about the rate?<\/b><\/p>\n\n\n\n

Your mortgage rate plays a role in how much house you can afford, but given rates are still below the historical average, don\u2019t fixate on it.<\/p>\n\n\n\n

And while mortgage rates have risen noticeably in the past year, the rise has been relatively small. \u201cIf rates go up by half a percentage point, that\u2019s only an extra $90 on your monthly payment if you\u2019re buying a $300,000 home. If $90 is going to break your budget, you should rethink what\u2019s affordable to you,\u201d Frick adds.<\/p>\n\n\n\n

However, there are options when it comes to mortgage products<\/a> that may help you afford the home you want. Check with your financial institution to learn more. You may find specials for first-time buyers. Form a relationship with a mortgage lender you trust. <\/p>\n\n\n\n

If you\u2019re in the military, you\u2019ll want to work with a financial institution that understands your needs. Be sure to consider a VA loan as they sometimes come with lower rates than standard products.<\/p>\n\n\n\n

What to know before you start<\/b><\/p>\n\n\n\n

If you already are in a home, may even find you\u2019re already in your dream home, but it just needs some work. Don\u2019t be afraid to tap your home\u2019s equity<\/a> for upgrades if you need to. Plus, home improvements go a long way whenever you plan on selling.<\/p>\n\n\n\n

Because the market for homes is likely to remain competitive for years to come, your purchase or your home improvements should be a great long-term investment. By being confident and prepared, you\u2019re set up for success in today\u2019s housing market.<\/p>\n\n\n\n

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