The 30-year fixed mortgage rate exceeded 5% this week, reaching its highest level in more than 10 years as inflation continues to rise. A year ago, the mortgage rate averaged just 3.04%. The combination of rising mortgage rates and the highest inflation rate in four decades, combined with higher home prices and limited inventory are creating the most expensive homeownership in a generation.
The steady rise in mortgage rates has lowering consumers’ outlook on homebuying. The Home Purchase Sentiment Index shows that 73% of respondents in March feel that now is a bad time to buy a home.
Early this month, most Fed officials agreed to increase interest rates by 25 basis points to counter the highest inflation in four decades. Some officials believed a 50-basis point hike might be more appropriate if inflation remained well above the committee’s target. The exact impact of policy tightening on long-term rates is difficult to predict, but thus far, the Federal Reserve’s stated objectives has prompted an unusually sharp jump in mortgage rates. This is likely to slow activity and home price growth. Economic forecasters are likely to downgrade their forecasts for new and existing home sales.
73% of respondents feel it is no longer a good time to purchase a home.
24% of consumers believe it’s a good time to buy a home.
A survey-high share of consumers are expecting their financial situations to worsen over the next year.
The increase in mortgage rates this year is expected to lower demand from move-up buyers. And fewer move-up buyers mean fewer available entry-level homes, adding to difficulty for potential first-time homebuyers.
This summer may be the best time to take advantage of the nearly 100% rise in home prices since the last market correction ending in 2012. If you have lived in your home 2 of the past 5 years, you are likely to receive up to the first $500,000 of profit Tax Free when selling your home! Give me a call, and I can share more information on the current real estate market, and how much cash you can receive when you decide a move is right for you. You can reach me direct at 800-944-2441, or email: Cary@Cary4Homes.com.
Receive Even More Profit by taking advantage of our exclusive “Free Loan” to update your home when selling
Cary Concierge Service
Cary will Fully Front the Cost to Prepare Your Home for the market to insure you receive the Highest Price
This includes, Staging, Repairs, and Cosmetic Improvement
No Hidden Loan Fees – No Interest Charged – Ever
Quick: Our concierge process is designed for speed. Work can begin now – and your home will sell fast.
Affordable: Eliminates stress. No loan fees, No appraisal fee, and No interest – No kidding!
Intelligent: Cary will help determine the best updates and repairs that bring you the most profit.
Easy: Cary is personally involved throughout the process, providing the best advice from start to finish.
We currently have buyers right now looking to purchase a Cypress home from $800,000 to $1.8 million.
Call Cary direct at 800-944-2441 or email Cary at: Cary@Cary4Homes.com. We can review your best options to insure you receive the most profit when selling.
The call, just like our concierge loan service, costs you nothing. And of course our conversations are always confidential. Let’s talk soon.
Re/Max College Park Realty
Experience you can trust:
Real Estate licensed in California since 1984
Over $35 million in home sales in 2021
Over $750 Million in career real estate sales
#13 of 6,100 Remax agents in California 2019
#42 of 62,000 Remax agents Nationwide in 2019
#99 of 130,000 Remax agents in the World in 2019
Remax College Park Realty’s #1 agent: 1998, 1999, 2002, 2003, 2010, 2012, 2013, 2016, 2018, and 2019
20 time Remax International Platinum and Chairman’s award recipient