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? In today’s real estate market, that is the question that a lot of people are asking. 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 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 am Krista Mashore with Homes by Krista and eXp Realty, please feel free to connect with me so I can update you on the latest developments with regard to the housing market and mortgage rates to help you make an informed decision whether buying or selling. In 2018 Krista Mashore sold over 22 Million dollars worth of Real Estate and is named in the Wall Street Journal within the Top 100 Agents Nationwide. Please see the article at The Wall Street Journal. To see Krista’s local recognition check out this link featured in the Brentwood Press. 

Krista’s expertise and professionalism is revealed not only in the 14 years in Real Estate but also by being within the top 1% of all Realtors in Contra Costa County continuously since 2002. Krista possess a Master’s Degree in Education, previously employed as a School Teacher. Her excellence derives from her outstanding communication, skills, expertise in marketing, and her optimistic attitude towards life in general. Pristine Customer Service to her clients is a top priority. Krista has a natural ability for developing trust by her client base.

Her attitude is characterized by her slogan:
“When You Do What You Love, People Love What You Do”