The 1% Rate Difference on Monthly Mortgage Payments

Interest rate volatility on the 30-year fixed-rate mortgage has significantly impacted the housing industry since the Covid pandemic. Prior to this, interest rates were stable, which helped stabilize the industry. However, the Federal Reserve reduced interest rates during the pandemic, leading to a surge in the market. The rapid change in rates has created a different lending environment for those who bought or refinanced in 2020-2022. The monthly payment is crucial for potential homeowners, and even a small change in interest rates can have a significant impact. It's important for real estate professionals to help clients understand the implications of rate fluctuations.