What's in this article?
If you’re a homebuyer looking to purchase in the Peach State, then mortgage rates in Georgia will certainly be of great interest to you.
Many questions arise when it comes to purchasing in the housing market today.
- Are mortgage rates going up?
- Where are Georgia’s best mortgage rates?
- What is the average monthly mortgage payment in Georgia?
- And many more
Let’s look at what is happening with Georgia mortgage rates.
Mortgage rates in Georgia
After a significant rise during 2022, interest rates took the biggest dip in over four decades in November.
Close on the heels of that drop came more reductions over the next two weeks, lowering overall rates to the same levels as we saw in September of this year.
Currently, the 30-year fixed mortgage rate (FMR) is hovering around 6.3%, and the 15-year FMR is around 5.5%.
Are mortgage rates going up?
Overall, mortgage rates are continuing their downward path.
There are several reasons for this, but one major factor has been new data that indicates softer inflation and a slight shift in the Federal Reserve’s monetary policy.
On the plus side, purchase demand in the housing market has stabilized, a welcome change for an economy that has taken a beating in the last few months. On the negative side, demand remains very weak.
Why are mortgage rates in Georgia changing so much?
As a rule, mortgage interest rates significantly impact the cost and financing of home buying over the long term.
Many factors contribute to the change in mortgage rates, but the trends of borrowers and lenders are two of the biggest. Borrowers—homebuyers—will naturally look to the lowest mortgage rate available to them.
On the other hand, mortgage lenders must maintain a careful balance of attracting borrowers without compromising their company by taking too many risks.
They could offer very competitive rates to catch the attention of more borrowers, but if too many of them default, it could significantly damage the company.
This market tension is why credit history plays such an important role in getting the best interest rate. The better your credit score, the better mortgage rate you’ll likely be offered.
The relationship between lenders and borrowers is just one example of the concept of supply and demand, which ultimately rules the change in mortgage rates in Georgia and elsewhere.
What is the average monthly mortgage payment in Georgia?
According to the U.S. Census Bureau, the estimated median monthly mortgage payment in the state of Georgia for 2021 was $1541.00.
Pro Tip: When buying a home—especially if you’re a first-time buyer—it’s challenging to know what purchase price you can afford. One of the best tools to use is an affordability calculator.
Although any calculator of this kind will only give you an estimate, it’s a good idea to have a figure in mind before you talk to a loan officer, who can untangle your financial numbers in greater detail and see what might be possible.
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Georgia mortgage options
People looking to purchase a new home or refinance their current mortgage in Georgia should know that housing affordability can vary quite a bit.
Home prices will almost always be higher in counties with higher median household incomes and big cities like Atlanta.
This year, the loan limit for traditional conforming home loans is $647,200.
FHA loan limits, on the other hand, vary by county. The lower limit for most counties in Georgia is $420,680 and can go as high as $515,200 for higher median-income counties like Greene.
What are Georgia mortgage rates right now?
As of mid-December 2022, the 30-year mortgage rate for Georgia has gone up to 5.89% from 5.83%. This new rate is still seven basis points below the national average rate of 5.96%.
The average 15-year fixed rate for the same period increased by three basis points to 5.20%, and the average 5-year ARM rate went up eight basis points from 5.81% to 5.89%.
Georgia mortgage rates are down 14 basis points from the week before when the average Georgia rate was 6.03%.
In December, the Consumer price index indicated that inflation is continuing to cool off, prompting the Federal Reserve to begin slowing hikes to the benchmark interest rate.
What are experts saying about future rates?
While no one has a magical crystal ball that can accurately foresee the future, several organizations, institutes, and individuals have notable credibility in predicting mortgage rates.
The Urban Institute, for example, has reported that the course of Fed activity and the economy is becoming more certain. However, they caution that it remains unclear whether Treasury rates will rise or fall in the near future.
They also say that easing uncertainty will likely “reduce the primary mortgage spread to normal levels,” thereby cushioning the potential impacts of further Treasury rate increases.
A secondary effect of the uncertainty reduction could be that the mortgage spread contracts quickly due to the limited supply of mortgage lending in a higher-rate environment.
Another analysis came from the National Association of Realtors (NAR) Chief Economist Lawrence Yun.
Yun sounded a note of optimism by saying he believes mortgage rates might have already peaked due to an “abnormally high spread” between the Treasury and 30-year fixed-rate mortgages.
“As the mortgage market normalizes,” Yun continued, “it will be an opportunity” for the rates to “decline even more.”
He added that he expected mortgage rates to sink to 5.7% by the end of 2023.
Finally, Yun added that if inflation continues to cool off and rates stabilize, it could bring more homebuyers back to the real estate market and boost housing demand.
Mortgage rates in Georgia—the bottom line
As you can see, the fluctuation of mortgage rates is always going to happen—it’s unlikely ever to find the “perfect moment” to buy a home.
The optimal time to buy a home is when you’re ready to buy—regardless of current mortgage rates.
Buying a home can stop a renter’s hard-earned money from vanishing into a landlord’s bank account. Instead, your money can begin investing in your future.
They have the experience and passion for getting people the keys to their homes.
Get started on your homebuying journey today!
Photo by Ketut Subiyanto