Why are mortgage interest rates rising so quickly? Will they keep rising? In today’s real estate market, these are the questions you’re asking. These fast changes can seem pretty scary, I feel you.
This year alone we have seen the federal reserve raise the 30 year fixed mortgage rate six times. Hi, I’m Sherri Echols, Broker Associate with RE/MAX Bryan – College Station.
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.”
You’re wondering 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.
This is having an impact on mortgage rates and the housing market. Until we see inflation come down, we may continue to see mortgage rates 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 see the rapid rate spikes we saw this year but we should see some stabilization instead. I know times are scary and uncertain but if you need to right size or relocate we can get it done together. Call me, I will help you navigate the market and you will have great success!
I’m your Community Market Leader Sherri Echols, a helping hand for a happy home.
