Last week in a video I’d posted, I mentioned that interest rates were on the rise and were expected to go up 3 times in the coming year.
Impacting Buyer’s and Sellers
Since that recording, we’ve been made a little more starkly aware of how these rate progressions may continue, hitting buyers and sellers in a very notable way.
According to a Freddie Mac report released Thursday, the 30-year fixed-rate mortgage averaged 3.45% for the week ending Jan. 13, up nearly a quarter of a percent from the previous week – the highest it’s been since March 2020 and it’s only expected to go higher.
As we came into the new year, we expected to see three interest rate hikes by the Fed. However, experts are now expecting four. We weren’t sure exactly how much those rates would increase or how abruptly. Many experts expected was that it was going to be in smaller but steady increments throughout the year, especially increasing toward the 3rd and 4th quarter.
As would be expected, inflation spikes are having their impact on mortgages as much as everything else.
Sam Bullard of Wells Fargo, said: ‘The Federal Reserve has sped up its timetable for winding down quantitative easing and is likely to begin raising interest rates sooner and more aggressively than previously expected.’
Obviously, this is not the kind of news buyers want to hear, especially when that interest rate has such an effect on their monthly living and/or the type of home they can afford. (This should be of solid consideration to sellers as this pull on buying power will ultimately effect how sweet an offer they can put into your hands.)
Now, I’m not looking to scare anybody. I am fully confident that MANY blessings and opportunities remain present and I’m all for helping you find them.
I just want to make sure I keep you guys in the loop as to what’s going on. Even for those not in the market, the real estate market is considered a key marker in assessing the health of the economy.
Does all of this mean the homebuyer ship has sailed? Not at all.
With all the chaos and crazy of last year’s market, many people hit pause and decided to “wait for the market to cool down.”
I get it.
Timing is everything.
That said, don’t let analysis paralysis keep you from making the move that you’ve possibly needed and wanted to for sometime. At some point, you have to determine whether waiting too long could really cost you more than you want to give or lose – in time, money and incredible opportunities.
We talked recently about why the winter market could be a great time to make that happen for you. If you’re still teetering on the fence, wondering when could be the right time or what you could be doing to prepare for an upcoming move, please just give me a call. You don’t have to go it alone. I’m happy to help you weigh things out and get things started as you are ready.
I hope you found this helpful. I’ll be sure to keep you in the loop as things continue to shift in the market understanding that knowledge is power. Let’s share a little power today.