Mortgage rates have been on an upward trend since the beginning of the year, and many experts say the trend is likely to continue into October. So far this year, mortgage rates have risen from around 3% to nearly 7%, the highest level since 2007. report“There is a risk that mortgage rates will rise further until inflation eases significantly,” said Greg McBride, chief financial analyst at Bankrate. See the best mortgage rates you can get here.
According to NerdWallet housing expert Kate Wood, interest rates for 30-year fixed-rate loans are over 6%, while products such as 15-year fixed-rate and 5-year ARMs have average interest rates above 5%. I’m here. “While the Fed’s latest rate hike wasn’t as dramatic as expected, that hike and two more likely to occur this year will likely continue to push mortgage rates higher,” Wood said. says.
Following a recent Federal Reserve meeting where Chairman Jerome Powell made it clear that fighting inflation is the central bank’s top priority, the latest forecasts from members of the Fed’s rate-setting committee are: It indicates that short-term interest rates continue to rise and are expected to rise further. Realtor.com chief economist Daniel Hale says the situation will last longer than previously expected.
“This will put upward pressure on mortgage rates, which is likely to be offset by slower economic growth, which is also expected. It is wise for buyers to prepare for the possibility of higher loan rates,” Hale said. Shoppers can put a budget valuation test to the test by using the mortgage calculator to try out the impact of higher interest rates on scenarios.
Hale notes that there will be no Fed meeting in October, but said Fed speakers will be present and addressing various audiences. “His next Fed meeting in November and December is likely to be eventful, as both investors and mortgage rates expect further short-term rate increases at these meetings. , there are potential surprises in either direction,” says Hale.
“There are three main factors influencing the market today: inflation expectations, economic growth and Fed policy. ,” National Association of Realtors (NAR) Real Estate Survey. But concerns about economic growth could slow the pace of rising mortgage rates, she added.
Zillow senior economist Jeff Tucker also said that rapidly changing interest rates meant that buyers felt frozen because what they could qualify for could change from week to week. It says it means it’s possible. “This is having a chilling effect on both first-time buyers and moving up buyers/sellers,” says Tucker.
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