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Understanding Home Buying in the Current Interest Rate Climate

Insights from Mortgage Loan Officer, Randy Fromm

When it comes to purchasing or building a new home, the current interest rates for mortgages often make potential buyers think twice. Randy Fromm, a Mortgage Loan Officer with Univest Home Loans. recently shared his thoughts with us on this subject, emphasizing why now might be the right time to build instead of wait. Let’s look at what Randy had to share.

The True Measure of Affordability

Affordability, according to Randy, isn’t just about interest rates; it’s a measure of cost relative to income, factoring in taxes, utilities, insurance, and more. But the biggest contributors? Home prices and interest rates for mortgages. For buyers hoping to benefit from waiting on potential rate decreases,may be nullified by a looming economic landscape.

Right Location – Right Home – Right Time

What affects the pricing? Randy shared that home prices are largely influenced by supply, demand, labor, and material costs. We all know what is happening with the supply chain struggle to meet the ever-growing demand and there’s no foreseeable decline in labor and material expenses. Waiting for a dip in prices might be a long game. How long can you wait is the question. The fact is that the right home at the right location is a rarity right now, and making the decision to purchase is even more time-sensitive.

Decoding the Cost of Credit

When delving into a hypothetical scenario and the foreseeable future, Randy paints a clear picture of the 30-year fixed mortgage rate and its implications over time. Such illustrative examples underscore the financial trade-offs between seizing the moment versus playing the waiting game. Now is the time to build.

You’re in good hands
As you can see by what Randy has shared, now is a fantastic time for you to consider building your perfect home. Who knows what will happen with the rates in the future. If you are looking to build a home with Welbilt Custom Homes and looking for guidance on financing your build with us, please visit Randy Fromm ( and tell him we sent you!