Current Mortgage Interest Rates
It is no secret that the swift change in the real estate market has been directly related to the rise in mortgage interest rates. This quick increase since the beginning of the year has dramatically affected every family’s buying power while they search for the perfect home. As a local Westlake realtor and real estate team we understand how rates directly affect a family’s ability to purchase and we want to help you navigate this fast-changing market as best as possible.
Some experts predict that by the end of 2022 mortgage rates may be as high as 7%. Other experts such as Realtor.com predict that rates will hover at 6% consistently by the end of 2022. Zillow suggests that in general rates will be higher by the end of 2022 than they are today. The general consensus is that the market is too unpredictable today due to inflation to have a strong prediction about the specific numbers. However, the Federal Reserve expects to cut interest rates in late 2024. While they are not expected to be as low as they were in 2021, they are expected to decrease somewhat.
As your local Westlake realtor, what we do know is that we are not living in a bubble, much unlike that of 2008. Back in 2008 loose lending practices primarily led to many families getting in over their heads when it came to their house payments. This eventually led to an abundance of foreclosures which caused home values to crash. Today, home values continue to hold strong as families hold significant equity in their homes and lenders maintain strict lending practices. Homes today are not falsely overvalued as your basic concept of supply and demand has driven prices up. It is still currently a fantastic time to sell your home as the demand for homes for sale far outweighs the number of homes available.