Lot Size5.16 ac
Home Size1,873 sqft
Days on Market3
Will the Rising Interest Rates Settle the Housing Market?
- Real Estate Tips
- May 19, 2022
One of the catalysts for the shift in the market has been the lowered interest rates. Interest is just the cost of borrowing money, but when it comes to a mortgage, it matters tremendously. The lowered interest rates have held the housing market in a tight grip. Since the rates are so low, it created a demand for houses. This demand outgrew the inventory, and BOOM. An unprecedented sellers market began. But, with the interest rates rising, will it stay that way?
Rising Interest Rates and What It Means for the Housing Market
But, now we are seeing interest rates slowly start to rise. While we can only speculate, these rising interest rates could mean that the housing market may start to slow down. According to the Mortgage Bank Association, the average 30-year fixed home loan rate is 5.7%. This is a jump from what it was last year.
Experts are speculating that this jump may cool off the housing market and slow buyers down.