As the world focused on Russia and Ukraine while promoting economic sanctions on the former, interest rates were expected to fall. And most interest rates did indeed fall with average 30-year fixed mortgage rates briefly touched below 4% on Tuesday, mortgage rates have actually risen over the past week. The current mortgage rates are about 4.28% for the 30-year fixed mortgage and 3.44% for the 15-year mortgage, levels last seen in 2019’s May prior to the Covid-19 breakout. Fed’s 2-day meeting will take place on March 15 which will announce the increase of Federal Funds rate to curb inflation. While the market is looking for a sign that everything’s getting better and the economy is recovering from the strain of the past two years, the mortgage rates rising and the limited housing inventory along with the inflation have become a heavy challenge for first time home buyers. According to the National Association of Realtors, home prices have increased nearly 17% across the country from 2020.
As always in real estate, conditions vary. While most first-time home buyers have been holding off until the market cools down to purchase their homes, it’s entirely possible that you can afford one right now. If so, contact me today to find out how much loan you can qualify. Let me save you a lot more time and money in the long run.
