Have mortgage rates hit their peak?

Have we seen peak mortgage rates?

Mortgage rates have trended upwards over the past few weeks, but have they hit their peak? CBS News spoke with several industry experts and they had a lot to say about the direction of the mortgage market.

Glenn Brunker, president of Ally Home, stated, “Mortgage rates will remain stubborn. As a result of continued strength in the labor market and the consumer, mortgage rates still reside around 7% levels.” However, Brunker also added, “As inflation shows signs of weakening in August, mortgage rates should remain stubbornly in the high six to low seven percent range through the rest of the month.”

Jake Hill, CEO of DebtHammer, said, “Once the Fed relaxes rate hikes, we’ll see mortgages take a modest downturn. Some sources predict that rates will gradually level off as soon as August, but the Fed’s next meeting in September may have a larger impact.”

Brian Shahwan, a mortgage banker and broker at William Raveis Mortgage, added, “Until consumers really start to feel the effects of the Fed hikes, in terms of their credit card debts, personal loans, auto loans, etc., will we see the economy begin to enter a recession period with mortgage rates quickly dropping.”

Which cities have seen the biggest jumps in home listings?

While some areas of the housing market have seen low inventory levels for most of the year, there are a few metros that have started to see improvement. In fact, 31 out of the 100 largest metro areas in the U.S. saw an increase in homes for sale in July 2023.

The largest improvement in homes for sale? Cape Coral, FL showed the largest year-over-year increase with a 51.1% increase in active listings. If you like canals and white sand beaches, Cape Coral may be the ideal metro for you.

Most of the big increases were located in the Sun Belt with New Orleans, Augusta, GA, and Little Rock, AR appearing in the top 10.

What’s it really like living in a tiny home?

Have you considered living in a tiny home? You may want to speak to a few folks who have tried it before buying some land and breaking ground. Realtor.com spoke with a people who live in tiny homes, and they had a few things they wished they knew before they made the switch.

First of all, tiny homes are really tiny. Only having 400 sq. ft. of living space, or less, can be a huge adjustment, especially if you have multiple people in your family. Second, finding a location to build can be a challenge. Not every lot is zoned for residential construction and there may be a lot of hoops to jump through especially if you want heat, electricity and running water.

You’ll also have to make a lot of adjustments to a home that may not have every amenity you’re accustomed to. For example, have you ever had a wood burning stove? You’ll have to figure out how much wood you’ll need, how long it takes to cook, what to do if you need more wood, etc. The adjustments can be overwhelming to some.

Lastly, tiny homes are very maintenance intensive. Whether you’re winterizing, dealing with a faulty appliance or maintaining fuel or wood levels, you’ll need to give a tiny home more attention than a normal single-family home.