Since the beginning of the year, mortgage rates have risen by several points, indirectly linked to the Federal Reserve’s efforts to control inflation. Most housing authorities agree that rates should continue inching up and aren’t expected to decline.
A higher mortgage rate can lead to a higher monthly payment. This is why, for many homebuyers, it’s worthwhile to consider buying sooner. If you buy a house now, instead of waiting until next year, you might save hundreds on your monthly mortgage payment. Your Loan Officer can provide you with a cost of waiting analysis if you’d like to run the numbers.
Though they’ve risen, mortgage rates are still historically low. What we’re seeing is a real estate market returning closer to its pre-pandemic levels. Mark Fleming, First American Chief Economist, says, “As the housing market adjusts to a post-pandemic norm with higher mortgage rates, housing market potential will subside from recent highs, but those highs were the exception and not the norm.”