Demand for housing has been booming in the recent months and it is no surprise that it is due to the lowest interest rates the economy has ever experienced. Although these rates have slowly begun to rise, they are still at an all time low.
Central banks are adamant about keeping the rates low for economic development after the pandemic. Until unemployment rates decrease, interest rates will continue to be at a record low. Plus, research shows that after the Great Recession in 2009, keeping rates low was the only solution to help the economy recover. While inflation is rising, which normally increases rates, we still see mortgage rates decreasing depending on the type of loan.
Where Are Mortgage Rates Headed?
The direction of mortgage rates continues to be discussed between experts. Right now, it is difficult to predict when they will begin to increase but many are saying by the end of the year.
What Does This Mean for The Housing Market?
Since rates are so low it is a great time to refinance if you are not looking to sell your home. Houses are in high demand, but now is still a great time to buy and even better to sell! See our free home evaluation tool to see what your home is worth in today’s market!
Inflation will still be seen in the housing market, but don’t let it deter you from buying a home. Experts say this is temporary and will eventually even out along with the interest rates. As the Feds continue to pump funds back into the economy, it will only continue to expand and grow.
Looking to Buy or Sell A Home But Unsure If This Is The Right Time For You?
With housing inventory being at an all time low and mortgage rates hovering around 3%, the market for home buyers still continues to be aggressive. But Amanda Howard Sotheby’s International Realty has the solution. If you are unsure about the current market but are looking for a new home, check out our Buy Before You List Program. This program enables you to sell your home before you buy, giving you the ability to sell your home with the security of having a new place. This will allow you to negotiate with a stronger offer for the home of your dreams!
We care about our clients and want to ensure they have a great and seamless experience. We understand the current market can make this difficult. It’s why we give our clients the upper hand when finding their dream home.