What’s the Latest on Interest Rates?
Here’s what experts predict we’ll see in the next few months.
In the midst of 2020 and for months afterward, interest rates sat at record lows. For example, in April of last year, the average rate for a 30-year mortgage was only 2.8%! These low rates added fuel to the fire when it came to the competitive seller’s market in many U.S. areas.
Mortgage rates remained quite low long after the lockdown and immediate economic effects of the pandemic. What are they doing now?
Rates Are Rising
For better or worse, mortgage rates are increasing. This week, the average topped 4% for the first time since 2019. What’s more, many experts expect to see rates continue to rise in April. Economists have pointed out that the Federal Reserve has indicated six more rate increases throughout 2022.
Underlying Causes
Inflation has been a nagging concern for months, but the shifts in the global economy in the last few weeks have had a strong impact on mortgage rates. War in Europe has affected the price of resources around the world, and markets are quickly responding.
How Mortgage Rates Impact You
Whether you own a home, are looking to buy, or both, the impact of mortgage rates on the housing market and on home buying budgets is likely to play a role in your decisions.
First, the expectation of further increasing mortgage rates means that many people who have been debating entering the housing market are now in a hurry to lock in the current rate before it rises any higher. In some areas, such as the Research Triangle, a particularly competitive housing market and a growing economy might see even more activity as people rush to become homeowners. For buyers, mortgage rates can make hundreds of dollars of difference in monthly mortgage payments, so finding a low rate is worth moving a few plans around.
For sellers, it may be time to consider whether your local market will remain a seller’s market when interest rates continue to rise in the next few months. In some areas, demand is so strong that the script is unlikely to flip completely. However, working with a trusted realtor to determine the trends in your area can help you develop the best plan for your goals.
For sellers who also need to buy their homes, now is a great time to begin the process of building a home to lock in today’s relatively low rate. This way, you skip the frenzy of competition that may come from interest rates beginning to rise, while also building the home you truly want!
When you build with Atmos, you’ll have a dedicated team to walk you through the entire custom building process, from financing to interior design. Get started today!
