Navigating the surge in mortgage rates in the current market has felt like trying to hit a moving target. As you prepare to have conversations with your global real estate advisor and your mortgage lenders, here’s a breakdown of what’s happening and how it could impact you if you bought a home now, or three years from now.
If you follow financial news, you have seen that the 10-year yield recently crossed the 4.34% mark, setting off a wave of volatility in the bond mar
ket that’s directly affecting mortgage rates. That’s when rates jumped from 7.39% to a high of 7.65% within a week, finally settling at 7.44%.
The Federal Reserve’s recent announcements have made the market a bit uneasy—and amid the job market tightening, too. If you’re considering financing, now may be the time to have a chat with your mortgage advisor about securing a rate.
It’s also important to note that even though mortgage rates have been rising, we haven’t seen a surge in the number of homes listed for sale. Contrary to popular belief, higher mortgage rates haven’t led to a significant increase in active housing inventory.
Additionally, higher rates haven’t led to a drop in home prices, and buyers are still active in the market. In fact, home price cuts have been lower this year compared to last. That’s why it’s more important than ever to present a strong offer. With this dynamic market right now, mortgage rates and housing inventory are in flux.
So let’s take a look at the real cost of waiting.
In these times of mortgage rate fluctuations and market uncertainties, it’s imperative to work with a Realogics Sotheby’s International Realty global real estate advisor and lending partner who are following the market. And finding a home that meets all your criteria and truly feels like the one—that won’t come around every day. Be ready to act when that time comes.
