As interest rates on mortgages continue to make headlines, it can be hard to know where to look. Where will rates be tomorrow, next week, or next month? What does that mean for prospective homebuyers?

While every situation is different, it’s largely true that the current interest rates play a large role in how much you may qualify for and the range of property values you should be looking at.

Beginning in late 2021, interest rates started to steadily rise, peaking in the fall of 2023, said Chad McGlothlen, director of lending at Compeer Home. Since then, mortgage rates have been bouncing around a bit but have overall trended slightly lower.

However, there’s more than meets the eye when it comes to simply looking at rate trends.

Here are a few things buyers should keep in mind:

Not all loans are created equal

While many news articles and most expert insights look primarily at secondary market home loans, there are other kinds of interest rates to consider.

In a portfolio home loan, a lender uses their own funding sources for a loan rather than selling it to a third party. Aside from offering a potentially lower interest rate, portfolio lending can also cover a wider variety of properties.

At Compeer Home, portfolio loans can be used for large acreages and income-producing properties: two things traditional lenders often shy away from. That’s because the team at Compeer Home specializes in rural lending and can offer the experience and resources needed to work with these unique properties.

For the Mumm family , Compeer Home’s portfolio lending made it possible to get a loan on their dream home – having been turned down for a secondary market loan from another financial lender. “That’s the uniqueness we bring to the table,” McGlothlen said.

Don’t fixate on current rates

While interest rates are top of mind for many homeowners, McGlothlen emphasized that they aren’t the only thing to consider. In other words, don’t pass up a dream property to hold out for a specific rate.

“When you're purchasing a property, you’re often saying it’s a property that you want to last forever,” McGlothlen said. “The interest rate is just a product of time, and I wouldn't advise someone to wait to buy their dream home, just because they're waiting for the rates to lower. A year from now, that house will likely NOT be on the market, and you would have missed out”.

For secondary market home loans, refinancing down the line can be an option to secure a better rate. When it comes to portfolio loans, homeowners don’t even need to take that step with Compeer Home. For a small fee, Compeer Home allows portfolio borrowers to get a new interest rate on their property when the rate market improves.* This benefit means they avoid a lengthy appraisal, paperwork process and closing costs can often times be in the thousands.

This benefit means they avoid a lengthy appraisal, paperwork and closing costs that can oftentimes be in the thousands.

Considering a move? We’re here to help.

People today have more choice and opportunity to live where they want than ever before, and for many the peace and quiet of the rural lifestyle is increasingly attractive.

As a leading mortgage provider for people moving to the country, Compeer Home has seen where the potential pitfalls lie – and we hope that by sharing some of them, you can make your own move to the rural lifestyle that much smoother.

Click HERE to connect with a Compeer Financial Loan Officer today!

* Borrowers must be current on loan obligations to qualify. Fees can vary by loan product. Terms, conditions and programs are subject to change.