{"id":6515,"date":"2022-09-20T08:55:43","date_gmt":"2022-09-20T12:55:43","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6515"},"modified":"2022-09-20T08:55:47","modified_gmt":"2022-09-20T12:55:47","slug":"mortgage-rates-are-on-the-move","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/09\/20\/mortgage-rates-are-on-the-move\/","title":{"rendered":"Mortgage rates are on the move"},"content":{"rendered":"\n

This week\u2019s Freddie Mac press release headline \u201cMortgage Rates Exceed Six Percent for the First Time Since 2008\u201d <\/em>grabbed everyone\u2019s attention.\u00a0 Indeed, mortgage rates are on the move and what does that mean for you and the housing market? <\/p>\n\n\n\n

\"Mortgage
Get pre-approved before home shopping<\/figcaption><\/figure><\/div>\n\n\n\n

According to Freddie Mac\u2019s Chief\nEconomist Sam Khater, \u201cMortgage rates continued to rise alongside\nhotter-than-expected inflation numbers this week, exceeding six percent for the\nfirst time since late 2008. Although the increase in rates will continue to\ndampen demand and put downward pressure on home prices, inventory remains\ninadequate. This indicates that while home price declines will likely continue,\nthey should not be large<\/em>.\u201d<\/p>\n\n\n\n

In her blog post, Nadia Evangelou, Senior\nEconomist and Director of Forecasting for the National Association of Realtors,\npoints out that the change in mortgage rates increased monthly payments about\n60% compared to the same time last year. She also calls attention to the fact\nthat the pace of rising rents is at a forty-year high! Regardless if you are\nrenting or buying a home, housing affordability is declining.  Using a little math, she underscores how\nincreasing rents outpace a fixed-rate mortgage on the purchase of a home. <\/p>\n\n\n\n

Yes, mortgage rates are increasing. But\na little history will put things in perspective. We all know that mortgage\nrates reached its peak in the early 1981 as a result of the deep recession of\nthe late 1970\u2019s.  Shortly afterward,\naverage mortgage rates dropped of the next several decades (albeit the\noccasional peak).  <\/p>\n\n\n\n

However, after the peak housing market\nof 2007, average mortgage rates dropped slightly in 2008 as a reaction to the\nmarket crashes and a decimated housing market. It wasn\u2019t until five years later\nand average mortgage rates hovering in 3 percent range, that the housing market\nonce again became broadly attractive to owner occupants (as opposed to\ninvestors). Mortgage rates have been averaging below 4 percent since then, with\nthe exception of 2018 when rates rose above 4 percent. <\/p>\n\n\n\n

Mortgage rates are on the move. Average mortgage rates are now above 6 percent, and there may be a silver lining.\u00a0 Many are hoping that the rising interest rates will reduce home prices (although that remains to be seen).\u00a0 However, after the brief rate shock is over, increased mortgage rates will likely incentivize banks to lend which could increase the pool of home buyers<\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n\n\n\n

. <\/p>\n","protected":false},"excerpt":{"rendered":"

This week\u2019s Freddie Mac press release headline \u201cMortgage Rates Exceed Six Percent for the First Time Since 2008\u201d grabbed everyone\u2019s attention.\u00a0 Indeed, mortgage rates are on the move and what does that mean for you and the housing market? According to Freddie Mac\u2019s Chief Economist Sam Khater, \u201cMortgage rates continued to rise alongside hotter-than-expected inflation … <\/p>\n

Continue reading “Mortgage rates are on the move”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[39,174,270,1012,405,17,280,13],"tags":[490,511,466,500,1174,489,593],"class_list":["post-6515","post","type-post","status-publish","format-standard","hentry","category-first-time-home-buyer","category-first-time-homebuyer","category-home-buyer","category-home-buying","category-homebuyer","category-mortgage-interest-rates","category-mortgage-payment","category-real-estate","tag-home-buyer-2","tag-home-buying-process","tag-housing-market-2","tag-interest-rate","tag-mortgage-interest-rates","tag-mortgage-rates","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1H5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6515"}],"version-history":[{"count":4,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6515\/revisions"}],"predecessor-version":[{"id":6520,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6515\/revisions\/6520"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}