The Feds raised the interest rate on 3/17/2022 for the first time since 2018.
Rising interest rates will shift housing foundations
“The interest rate on the most popular U.S. home loan jumped last week by the most in 11 years as bond market investors rapidly repositioned for the Federal Reserve to take more aggressive action to contain inflation, a survey showed on Wednesday.
The Mortgage Bankers Association (MBA) said the contract rate on a 30-year fixed-rate mortgage shot to 4.8% in the week ended March 25 from 4.5% a week earlier. That was the largest one-week increase since February 2011, and it brought mortgage rates to their highest level since December 2018.”
Mortgage rates continue their ascent
https://www.washingtonpost.com/business/2022/03/24/mortgage-rates-continue-their-ascent/?
“The largest weekly jump in mortgage rates in two years pulled down mortgage applications, with both purchase and refinance activity falling last week and from a year ago,” Bob Broeksmit, MBA’s president and chief executive, said. “MBA’s new March forecast calls for higher mortgage rates, but moderating home-price growth and rising inventory should still lead to an annual increase in new and existing-home sales.”
30yr Fixed Rates Heading Toward 5% at Fastest Pace in Decades
https://www.mortgagenewsdaily.com/markets/mortgage-rates-03222022?
Mortgage rate soars closer to 5% in its second huge jump this week
How This Affects The Market
WSJ Video 3 reasons why the red house housing market could cool in 2022
Economists expect that the increase in interest rates will cause the market to cool, which could slow the fast pace of home-price growth seen over the past couple of years.
How Rising Fed Interest Rates Affect Home Buyers, Homeowners
As mortgage rates move toward 5%, many people looking for a home aren’t able to afford what they wanted. Rates began rising in January and continued higher in February. The average rate on the 30-year fixed mortgage is now more than a full percentage point higher than it was one year ago.
Mortgage rates are surging faster than expected, prompting economists to lower their home sales forecasts
Four ways the Fed’s interest rate hike could affect you
https://www.washingtonpost.com/business/2022/03/16/fed-interest-rates-impact-economy/
What The Fed Interest Rate Hikes Mean
Why it’s still a prime reason to sell if able—
Tired of hearing it yet? “It’s a sellers’ market!” As a real estate agent, these words have come out of my mouth almost daily in the last year. It’s still true- Demand remains strong and supply remains historically low over in the national housing market and in the Northern Virginia markets. It’s spring and that means the annual homebuying season is in full bloom.
If you’re gearing up to sell your house this year, the ideal time to put it on the market is right around the corner. A new report from Realtor.com has determined that the week of April 10 through April 16 is the best time to list a home for sale in 2022.
Housing Market Update: Prices Reach New High as Few Americans Put Homes Up for Sale
https://www.redfin.com/news/housing-market-update-home-prices-rise-most-since-summer/?
The housing market frenzy will pass. Just not this spring
https://fortune.com/2022/03/11/housing-market-prices-frenzy-will-pass-not-this-spring/
Why it could be prime time to buy
A mortgage payment would be less than rent. Do your homework and work out whether renting vs. buying makes sense in your market. A Rent vs. buy calculator can help you crunch the numbers.
You have a down payment saved up. You’ve done your research and know how much you want to put down, the types of mortgages you can get and have the money already saved up in the bank. It’s also important to speak with a lender who might show you ways to work with a less than ideal down payment.
It May Be Now or Never for Spring Homebuyers Amid Rising Prices and Higher Mortgage Rates
Pending home sales sink in February, setting a grim tone as housing market enters key spring season
https://www.cnbc.com/2022/03/25/home-sales-fall-in-february-ahead-of-key-spring-selling-
Pending Sales Decline for 4th consecutive month
It’s important not to focus solely on home prices instead of a mix of price and interest rates. Ideally, it’s best to buy when both interest rates and home prices are low. If that’s not possible, calculate both the short- and long-term costs of a lower interest rate versus a lower purchase price. When the numbers make the most sense for you, it may be time to make your move. As you can see below, today’s interest rates are still significantly lower than just 15 years ago.
Before it’s too late
Mortgage rates rise with the potential to shake up housing market
Mortgage rates zoom 4.5% – here’s what home buyers need to know
https://www.marketwatch.com/story/mortgage-rates-surpassed-4-5-heres-what-home-buyers-need-to-know-11648735667
Federal Reserve issues warning over “brewing U.S. housing bubble”
https://www.cbsnews.com/news/housing-bubble-2022-warning-federal-reserve/
The economic shock hitting the housing market just got bigger
https://fortune.com/2022/04/03/housing-market-mortgage-rate-shock-gets-bigger/amp/
US mortgage rates climb steeply, slowing housing boom
https://www.aljazeera.com/economy/2022/3/31/us-mortgage-rates-climb-steeply
Barry Habib’s Market Insights and More Educational Links
https://www.politico.com/news/2022/03/29/federal-reserve-recession-inflation-rates-00021119
DISCLAIMER: Information on this page does NOT constitute financial advice.
