Interest rates are always a topic of interest, especially now that the Fed has raised them in order to combat inflation. The increase is apparent in people’s day-to-day lives: from paying credit card debt, to financing a car, to their mortgage rates.
As I write this blog, the average rate for a 30-year fixed-rate mortgage is 5.65%, whereas the 2021 average for the same loan type was 2.96%. This is a significant jump; however, the average rate for a 30-year fixed-rate loan between 1971 and 2021 was 7.77%, so we are still hovering below that number and we are nowhere near the 18% and higher rates that we saw in the early 1980’s. According to Forbes.com, “Experts are forecasting that the 30-year, fixed-mortgage rate will vary from 4.8% to 5.5% by the end of 2022,” which is higher than what we saw last year but still not unheard of.
Overall, while I wish mortgage rates were lower, I do not think that the increase – which supposedly will hover around where it is now – will stop our busy real estate market, at least not in South Florida.