I hope you all have had a wonderful start to your 2023! I always love marking the beginning of a new year and anticipating all it may hold. Especially in the real estate world, a year can bring so much change with it, which is one of the reasons why “unlocking new doors” with all of you is so exciting! Let’s take a look at mortgage and interest rates as they stand right now, and predictions of where they might be headed in the rest of the year.
There are a wide variety of factors that play into the rise and fall of mortgage rates and interest rates. Some of the biggest factors include the economy, mortgage demand, the employment rate, supply, and the Federal Reserve monetary policy. As we have seen inflation affect many areas of life, the real estate industry is no exception. Mortgage rates are approximately double what they were a year ago at this time, and much of this is due to a domino effect that inflation instigated.
If you have been following the housing industry over the past year, you may have experienced a little bit of whiplash! Mortgage rates went from almost record-breaking lows to the highest we’ve seen in 13 years in just a few months. The good news is that although the market is still a little volatile, we are seeing lower costs on houses month over month, and experts are hopeful that inflation coming more under control will have a favorable effect on the market.
We always need to remember as well that Real Estate is local. Everything that is reported on the national level does not always happen at the local level, so don’t take the media’s word as the end all. For example, it seems on the national level inventory of homes on the market continues to increase, while this is not happening in our local community. Our average sale of home prices did increase last year over 2021, also something that you won’t hear nationally!
If you are looking for your forever home, it is easier to navigate the rising and falling of interest rates over time and come out on top in the end. Remember, you can always refinance if interest rates drop! It may take some extra effort and wise counsel on the front end to make sure that you don’t end up making a decision you regret, but that’s where I come in! As always, it would be my pleasure to walk through this process with you, explaining the details of the market as it applies to your situation, and ultimately unlocking the new doors that are perfect for you! Please do reach out if you have any specific inquiries or questions!