Interest Rates - Will they ever go down?

😟Worried about rising interest rates? You're not the only one, rates are higher than they have been in a long time and the future remains a mystery. As handy as it would be, no crystal ball can predict what will happen next 🔮. They may hold steady for a while or inch even higher, but the commonly held belief is that they'll dip as inflation eases. It's impossible to guess where the bottom will be, but I think it's safe to say many would welcome a return below the 4% mark.

Now, here's where you, the prospective homeowner, can make an impact on your mortgage rates - the duration of your rate lock. When the rates are down our instinct is to fix our rates for longer, but in that case the longer the fix the higher the rate goes back up 📈. So, it's crucial to grasp the strategy behind this. The banks extend the rate duration to shield themselves from future rate hikes. The key here is to tailor your approach depending on your personal circumstances. 🧮Calculate not only the immediate interest you'll pay over your fixed time but also if the rates go or stay up long term. Having a short period at the beginning of your mortgage when you are borrowing the most money with a lower rate may be more beneficial than later in the mortgage period when you are borrowing less.

🤔Consider this: having a shorter initial rate period, when you're borrowing the most, can be strategically beneficial. As the rate will have less impact later in your mortgage journey when you're borrowing less. A bold strategy you may like to consider is purchasing your property without a mortgage now and and securing one later when rates are more favorable💸. But, like any gamble, this move carries its risks. It hinges on the assumption that rates will go back down. Always be prepared for the alternative, as rates cannot be assumed. Where's that crystal ball when you need it, right?🌀

In this uncertain financial landscape, your power lies in informed decisions. ☑️💪Strategize, explore your options, and remain prepared for whatever path the rates decide to take.