DAYTON — A new study suggests Ohio homebuyers saw one of the biggest increases in mortgage rates within the year. It comes after the Federal Reserve cut interest rates a half point, leaving many consumers waiting to see the benefits of that move.
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Despite the recent drop in federal interest rates, the average mortgage rate nationwide remains well over six percent. In Ohio, the second quarter ended with those rates at just under 6.3 percent, which a WalletHub report says was the twelfth biggest increase from the first quarter in the country.
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“Just the headline itself, you know, stirs up some fear, but the actual percentage increase actually relates to about an eighth in rate,” Mike Romano, Thrive Mortgage’s producing regional manager, told News Center 7. “So 6.375 goes to six and a half. Doesn’t really change much when it comes to your mortgage payment monthly.”
Romano handles many mortgages in the Dayton market. He said the jump for those looking to buy a home in dollars per month is negligible. His advice is that as long as your finances are in order and you can afford consistent monthly payments, there is no reason to try and wait out much better rates somewhere down the road.
“You don’t want to be the person who spent your last time getting into the house and then lose your job because of a recession, etc., and then lose the house. That would be a mistake,” Romano said. “But if you can afford it and you’re comfortable, you have that nest egg and that rainy day fund, certainly now’s the time to buy.”
For perspective, a drop from a 6.5 percent mortgage rate to 5.5 percent might change a payment by $100 or so, which is why Romano said it should be business as usual for potential buyers who could always consider a refinance at a later date.
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