Why Are Mortgage Interest Rates Rising So Quickly And Will They Keep Rising?
Why are mortgage interest rates rising so quickly and will they continue to do so?
This year alone, we have seen the federal reserve raise the 30-year fixed mortgage rate six times. According to Sam Khater, chief economist from Freddie Mac, “The uncertainty and volatility in financial markets, is heavily impacting mortgage rates. The 30-year fixed rate mortgage has more than doubled over the last year.” As you can see, these are significant increases. So, what is driving up the mortgage rates so quickly?
The main answer has to do with inflation. The Federal Reserve is trying to bring soaring inflation down and slow the economy which is having an impact on mortgage rates and the housing market. Until we see inflation come down, we may continue to see mortgage rates continue to rise in the new year. So, what does that mean for 2023?
According to Mark Fleming, chief economist of First American, “While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.” This means we may not necessarily see the rapid spikes we saw this year in rates, and instead, more of a stabilization.
In times of uncertainty, it is very important to have a trusted expert on your side that can help educate you in this market and navigate you through it. I’ve been in this business for nearly 4 decades and have successfully helped over 2,200 sellers and buyers in all market conditions. We will help you to derive the very best outcome in this challenging market we are in.
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 2022 real estate forecast, don't hesitate to reach out - we're happy to help!