It is no secret that since the start of 2022, mortgage rates have been on the rise. While the increased rates may have some current or potential homeowners scared to make a move on buying a home, there is never a bad time to invest in your future. 

Would this be a good time to buy a home?

No matter how low or high the mortgage interest rates are, paying rent is equivalent to paying 100% interest. When you are paying rent, 100% of the money you spend is going to someone else. When you buy, a portion of your monthly payment is being invested towards the principle balance of the home, helping you build equity. Over the last several years, the average cost of rent has increased significantly with the renter getting nothing back. So, even with an increase in rates, you would at least be contributing toward something that you own.

How do higher rates affect the housing industry?

Higher interest rates = higher monthly mortgage payments. Higher monthly mortgage payments for landlords = higher monthly rental costs. Whether you are buying or renting, the monthly cost may be a little higher with rising interest rates, so why not invest the additional expense in yourself? According to, the asking price of homes has dipped slightly despite the ongoing demand for homes. This may be the result of sellers adjusting their expectations and being more mindful of buyers tightening budgets. If we continue to see home prices drop because of higher interest rates, it may make a shift in the overall housing market.

What factors affect the interest rate you qualify for?

Mortgage rates are fluctuating interest rates that can change daily. A wide range of factors can affect the rate for your mortgage loan, including credit score, loan type, down payment amount, and loan term. Most mortgage loan rates are set on risk-based pricing, meaning the riskier the borrower is (low credit, small down payment, etc.), the chance of paying a higher rate goes up.

Asking for advice from an ACU of Texas Mortgage Loan Officer is always free, so please contact us to ask any questions you have about current rates or what it would take to qualify for a mortgage.