Rates on 30-year fixed mortgages from Freddie Mac have gone up a little bit in the last few weeks. The average rate rose to 5%. That news might make you question the timing of your home search, but the truth is that timing has never been more important. You may want to put your plans on hold in the hope that prices will go down, but that will only cost you more. There is a good chance that mortgage rates will keep going up over the next year or so.

For people who want to buy homes, here are some things to keep in mind as mortgage rates rise.

How Mortgage Rates Change What happens to you when your mortgage rate goes up

Your mortgage rate is very important when you look for a house. As interest rates rise, they change how much you'll have to pay each month for your mortgage, which affects how much you can afford to buy. Using the chart below, you can see how even a quarter-point change can make a big difference to how much you pay each month.

It's likely that mortgage rates have already gone up, which has made it more difficult for you to buy things in the past. Instead of putting off your plans, today's prices should make you want to buy now before they go up even more. Use that motivation to get you going on your search and plan your next steps in that way.

The best way to get ready is to work with a real estate expert now. People who work as agents can connect you with a trusted lender, help you search for homes based on your budget, and make sure you're ready to act quickly when the time comes to make an offer.

The Bottom Line

Serious buyers should see rising interest rates as a reason to buy now, not a reason to hold off. You will pay more in the long run if you don't hurry. Let's meet up today so you can better understand your budget and be ready to buy a home even before interest rates go up.