Rising mortgage rates
Buying a House in 2022? How To Navigate The Current Real Estate Market
Buying a home is one of the most significant financial decisions most of us will make. If you’re looking to buy a home, you’ve probably […] Read More
The post Buying a House in 2022? How To Navigate The Current Real Estate Market appeared first on Homie Blog.
Buying a House in 2022? How To Navigate The Current Real Estate Market
Buying a home is one of the most significant financial decisions most of us will make. If you’re looking to buy a home, you’ve probably […] Read More
The post Buying a House in 2022? How To Navigate The Current Real Estate Market appeared first on Homie Blog.
FHA borrowers hit first, hardest by sinking economy
The fate of FHA-backed mortgages in the ongoing downcycle housing market is being compared with a canary in the coal mine by several industry experts who are seeing early warning signs of distress.
Build-for-rent is a bet on the ‘new normal’ housing market
Demand for build-for-rent homes is growing as the purchase market falters. But success in the space is all about location, location, location.
Rising Mortgage Rates Affecting Credit Approval
Mortgage rates have constantly been on the rise in recent times. This is a result of changes (specifically increases) in levels of economic growth and inflation. This poses direct and indirect implications on the general state of credit approval. Generally, mortgage rates and credit approval have an indirect and inverse relationship. To elaborate, here is […]
The post Rising Mortgage Rates Affecting Credit Approval appeared first on Credit Absolute.
Rising mortgage rates are sending home prices lower
After a decade of largely uninterrupted gains, Southern California home prices are now falling, the result of rising mortgage rates that have squashed demand.
How rising mortgage rates affect home-buying power
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
How rising mortgage rates affect home-buying power
Interest rates on home mortgages are rising rapidly across the United States, which seems to be slowing most housing markets. (Some, like the market here in Corvallis, have been less affected. Give it time.)
The average mortgage rate for a 30-year loan was about 3.0% at the start of the year; today, it’s at 6.245% â even for somebody with an excellent credit score over 800.
Kim and I are fortunate that we bought our home in 2021 instead of waiting until 2022. Mortgage rates weren’t actually a factor during our deliberations last year; the historically low rates were simply an added bonus for buying when we did.
When we purchased our home last August, we took out a $480,000 mortgage at 2.625%. We didn’t hit the precise bottom of the mortgage market (that was early January 2021, when we might have had a loan for 2.5%), but we came close.
Here’s a chart from the Federal Reserve that shows mortgage rates from the past 2.5 years.
And here’s a chart that shows mortgage rates for the past 50+ years:
Mortgage rates have hovered at historic lows since the Great Recession of 2007-2009. And rates fell even further during the COVID pandemic. (These low rates are partly responsible for the blazing-hot housing market of the past two years.)
What do these rising mortgage rates mean to actual home buyers? Let’s use our situation as a representative example.
Despite High Rates, Advisors Say Now May Be a Great Time to Buy a Home
The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At ⦠Continue reading â
The post Despite High Rates, Advisors Say Now May Be a Great Time to Buy a Home appeared first on SmartAsset Blog.