Mortgage Interest Rates are rising quickly, will they continue to do so? In today’s real estate market that is the question that a lot of people are asking. It’s the question of the day.
This year alone, we have seen the Federal Reserve raise the 30-year fixed mortgage rates six times. According to Sam Khater, Chief Economist from Freddie Mac, he says, and I quote, “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,” end of quote.
As you can see, there 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 it actually mean for 2023? According to Mark Fleming, Chief Economist at First American, he says, “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 that 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 more important than ever to have a trusted expert on your side that can help educate you in this market and navigate you through it. Hi, I’m Krista Mashore with Homes by Krista and eXp Realty. Please connect with us at any time so I can update you on what the latest developments are in regard to the housing market that is current right now and the mortgage rates. And remember, when you do what you love, people love what you do.