Has a new monthly mortgage payment surged?
While mortgage rates have gone up in the past year, have mortgage payments also gone up? The team at Bloomberg News has surveyed 10 major metropolitan areas and come to the same conclusion. Rates are up. Home prices are still high. And monthly mortgage payments are higher than they were.
However, this is still a great time to lock in your rate to avoid the potential of a rate surge while you’re shopping for a new home.
What are experts saying ahead of today’s Federal Reserve announcement?
Opinions are virtually universal that another interest rate hike is coming from the Federal Reserve today. What isn’t known is how far The Fed will go to combat inflation. Initial speculation had The Fed raising interest rates by 75-basis points. After last week’s hot inflation report, The Fed may choose to get more aggressive with their management of monetary policy.
CNBC has five ways that the next rate hike could impact you. While not directly impacted by the Federal Reserve, mortgages, especially 15-year and 30-year fixed, are tied to Treasury yields and the economy. A larger than expected rate hike could send mortgage rates even higher.
Is there a ‘new normal’ for first-time homebuyers?
Pre-pandemic, no one had ever heard of terms like ‘new normal’. In 2022, it’s used to describe a massive change in just about any facet of life. HousingWire is claiming that current market conditions are a ‘new normal’ for homebuyers, and that we’re in an age of moderation when it comes to buying a house. Higher prices, inflated rates, and low volumes of available homes seem to be where the market wants to stay for a while, and prospective home buyers either need to adjust to conditions or stay out of the market until conditions improve.
The good news is that the team at HousingWire feels that a housing market crash like we saw in 2008 is unlikely. That was triggered by homeowners lacking equity in their home and a rush to sell mortgages that people could no longer afford. Current market conditions show a robust jobs market and home equity is at an all-time high.
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