Why are Mortgage Rates so Finicky Right Now?
With the latest inflation reports, it's no wonder why mortgage rates are so finicky lately and breaking all the rules.
First off, let's remember inflation is the key reason that rates are as high as they are right now. In theory, if inflation falls back, then mortgage rates should follow. However, with the latest consumer price index reports, inflation was up again at 3.2% in July slightly higher than in June. This has caused rates to take a jump in recent weeks.
According to Realtor.com, mortgage rates have been hovering back and forth in the 6-7% range for the past several months, with the most recent forecast predicting the average 30-year fix rate, to close out the year at around 6.6%. Most experts are predicting a bumpy road for the remainder of the year and into the beginning of 2024.
But let's remember, rather than worry about mortgage rates, as a buyer, focus on what you can control. There are still plenty of options available when shopping for a loan. If you would like more information on current housing data or what is happening locally in your area, feel free to reach out to my team and I for the most up-to-date information.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!