Here is everything you need to know about rising mortgage interest rates.
Every Thursday, Freddie Mac publishes a report on the average mortgage interest rate. At the end of September, it was shockingly at 3.01%. The press release from Freddie Mac said, “Mortgage rates rose across all loan types as the 10-year Treasury yield reached its highest point since June.” The U.S. Treasury and mortgage interest rates have had a very close relationship for the last 50 years.
The main things that impact the treasury yield are inflation, economic growth, and interest rates. Experts have been concerned about inflation and economic growth during the pandemic, which caused the yield to spike, and ultimately made the mortgage rate spike.
How does this affect you? Freddie Mac says there will be a modest increase in mortgage interest rates which could potentially slow down this crazy market that we’re seeing. According to the National Association of Realtors, interest rates are still historically low. Don’t worry about trying to time the market.
Check out the graph at 1:52 in the video to see what most experts are predicting for 2022. It also shows the impact that even 0.5% could make on a monthly mortgage payment.
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