Rates are at the level as 2019. If you were one of the 5 million homeowners who did not take the advantages of low rates in 2020 and 2021, you will find the interest rates have gone up approx. 0.5% ($136/mo. mortgage payment for a loan amount of $500,000) since January 2022. According to Freddie Mac on January 27, 2022(Freddie Mac – We Make Home Possible), the average 30-year fixed rate is at 3.55% with 0.7% fees and points.
Fed Chairman Powell released the statement “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate” which provides more confirmation that the funds rate will increase in March. The Fed funds rate set a short-term rate at which banks can borrow from each other. A jump in this rate means increasing in lender’s costs which gets bypass to mortgage borrowers.
On the flip side, new, positive information for homeowners has been released by the National Association of Realtors, stating that homeowners across the country are sitting on a record amount of equity due to the rise in property values, with average earnings of $50,200 across the board. Despite it seeming like the ideal time to sell properties, experts project that home prices will continue to rise for at least several months in the future. This is a perfect timing to take out the equity consolidating credit card debts and/or remodeling/renovating your properties. Contact me at 925-216-3618 today to find out more information.
