Mortgage Rate Approaching 6 Percent
It looks like mortgage rates are pushing the 6 percent mark, a significant milestone for the real estate industry.
After four consecutive weekly hikes, the benchmark 30-year fixed-rate loan is just under 6%, a psychologically significant level that hasn’t been breached in six months. Given the inflation-fighting talk coming out of Federal Reserve officials this week and the clear implication that the central bank will continue hiking interest rates, 6% mortgages might be at 7% sooner than most economists are predicting.
Mind you, 6% and even 7% mortgage rates are pretty darn good by historical standards. Our current housing boom, which started in 2000, began with the 30-year mortgage at 8% or so. But we have been treated to such low rates for such an extended period that even a historically low 7% feels high.
We’re now about one-half a percentage point above where we were this summer. On a $250,000 mortgage, that difference equates to about another $80 a month in principal and interest payments. That might not be enough to stifle homebuyers who can afford the $1,500 or so payment in the first place, but as rate increases pile up so will those extra dollars on the payment.
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
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Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
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