After a steady decline during the winter months, mortgage rates have increased in recent weeks. This has raised concerns for potential homebuyers who find it harder to afford homes due to higher mortgage rates and prices. If you’re one of these buyers, you may wonder if it’s the right time to buy or wait until rates come back down.
The recent rise in mortgage rates has been driven by inflation, as Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association, explains. Market expectations that inflation will persist have led to the Federal Reserve keeping monetary policy restrictive for longer, causing rates to increase across the board.
According to Freddie Mac, the most recent weekly average 30-year fixed mortgage rate is 6.5%, the highest this year and the third consecutive week of increases. Despite this, it may be worth reconsidering if you’re considering holding off on your home search. The rate rise has led to a 13.3% decline in mortgage applications in just one week, meaning buyers may have less competition. This could be an opportunity to buy the home you’ve been searching for.
In conclusion, while mortgage rates have risen over the past few weeks, it doesn’t necessarily mean you should delay your plans to buy a home. With less competition in the market, it could be an excellent time to take advantage of the opportunity. Connect with me to explore your options and make an informed decision.