submitted by Lynne Kelleher, Berkshire Hathaway Home Services/Fox Roach Realtors Newtown Office
They’ll eventually come down, it’s just a matter of time. That’s what the experts are saying anyway.
After shooting up over 7% for a brief period, they’ve now settled into the upper 6% range. And we can see the impact higher rates have had on buyer’s purchasing power, as fewer homes have sold than the previous month for the last 9 months.
High inflation means high interest rates, but a recent glimpse of lower inflation numbers could mean good news for the mortgage market.
According to Ali Wolf, Chief Economist at Zonda, “The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . .we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”
If the trend continues and lower inflation takes hold, interest rates should follow. Lower rates mean more buying power. If you can’t wait for rates to come down, purchasing now and refinancing later could be an option for you.
Some mortgage companies are introducing programs with incentives to help you do just that. Either way, the market is still tricky, regardless of whether you’re buying or selling.
It is certainly not a market for amateurs! The agent you choose matters, so choose wisely.
Reach out today at 215-813-6655 or Lynne@LynneKelleher.com and let’s make this market work for you!