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Wow! There’s not much more I can say about the path of rates this year. In my 21 years of providing home loans, I’ve never seen rates shoot up like this in such a short period of time…
The FED is obviously in inflation-control mode, and raising rates is one of its best weapons. The result has been 3.25% in rate hikes over the past 7 months. While long-term mortgage rates don’t directly follow FED rate hikes like HELOC & credit card rates, mortgage rates have gone through the roof as compared to COVID times. Whereas we were providing 30-year rates in the low 3’s at one point, we’re now hitting the mid 6’s, which is a shock to any homeowners who have acquired a loan in the past 10 years. Rates are currently at 15-year highs.
This has sent shockwaves to the real estate market, providing a much-needed slowdown, as values were soaring to highs never seen before, making it difficult for first-time buyers to get in the market. The hope is this change will provide a healthier market, while not falling like a rock as the market did in 2008. Many homeowners are unsure if now is the time to buy or make any kind of move. We’ve always maintained these decisions should be made based on your family’s current finances, as well as long and short-term goals. Each situation is unique and should be assessed accordingly.
Many are guessing, as they always do, which way the market will go. Some are claiming doom, while others are still predicting rising prices. Who’s right? I’ll tell you in a few years as Monday morning quarterback. Nobody knows for sure. Only you know what’s best for your family, and timing is everything…but not with timing the market. Rather your personal timing is what’ll serve you best.
Contact us any time with questions…we’re happy to help!