LET’S TALK CURRENT INTETREST RATES

By now you’ve probably heard…  Gone are the days where you could get a 30 year fixed fixed mortgage interest rate under 3.0%.  Buyers are going to currently have to qualify for homes with an interest rate that is somwhere in the 4.5%-4.99% range, and that’s assuming the buyer has fairly decent credit (above 700 FICO). 3.0%.  Buyers are going to currently have to qualify for homes with an interest rate that is somewhere in the 4.5%-4.99% range, and that’s assuming the buyer has fairly decent credit (above 700 FICO).  The question is, Is that doable?

So far the increase in mortgage rages hasn’t significantly impacted purchaser demand, according to Ali Wolf, Chief economist at Zonda. Ali explains that “Mortgage rates jumped much quicker than expected, and yet housing demand appears to be holding steady.”  Granted we are still in the early stages of this rate hike so we will know the real impact of the increase in interest rates by May, 2022.

The bottom line is this;  It’s impossible to predict exactly what interest rates will do, and how the increase will affect the market, but what we do know is that inventory keeps getting swept up in our local market of SoCal (Downey & surrounding areas, including North West Orange County).  When the words, “There’s no way that home will sell for that price.” come out of your mouth, most end up surprised at what they see.

For more detailed info on what economists are saying about interest rates make sure to check out a full article by clicking the link below.