MINNEAPOLIS — For more than a decade, average mortgage rates had been at historic lows.
But as anyone wanting to buy a home knows, within the last year they've been creeping back up.
So what do you do if you have one of those low rates, but you want to make a move?
1. Consider renovations
Can you make your current home fit your changing needs? If needed, research home equity loans and shop around for the best rate.
2. Remember you can refinance
Sometimes you just have to move. But remember: While your new home loan may be at a higher rate, that doesn't mean it has to stay that way.
"If the rates do go down, you have the opportunity to refinance down the road. And if they go up even higher, you'll be glad you locked in when you did," said Jerry Moscowitz, President of the Minneapolis Area Realtors.
3. Change your perspective
Here's the thing about these higher mortgage rates – historically, they're not that high.
Freddie Mac lists average mortgage rates going back to 1971. Look through that date and you'll find today's average rate of 6.6% for a 30-year fixed-rate mortgage isn't so bad compared to decades past.
Moscowitz stressed that the period of low rates we just came out of was abnormal. He says for those who need to buy, waiting until those low rates come back may not be the best idea.
"I think there's a danger in waiting, thinking that you're going to go back to those interest rates. I don't think that's going to happen," he said. "If you need to move, and you're able to move financially, I still think you should do it and not kind of wait to see what happens."
Moscowitz says the Twin Cities is still dealing with a shortage of affordable homes, both for buyers and renters.
The lack of housing is, at least in part, due to homeowners choosing to stay put because they're locked in at a low rate.