A Home for the Holidays—How a Mortgage Rate Reprieve Could Help Prospective Buyers
Mortgage rates fell from above 7% to 6.6% for 30-year fixed-rate loans during the week ending Nov. 17, and while increased affordability offers a temporary reprieve to budget-conscious homebuyers, experts anticipate more gains ahead as the Federal Reserve works to tame runaway inflation in the housing market. While real estate experts like Realtor.com Manager of Economic Research George Ratiu don’t foresee rates returning to the 2% and 3% ranges recorded last year, many also believe that the days of major rate hikes are in the past, Realtor.com reports.
Instead, mortgage rates are expected to fluctuate around 7%, but most experts don’t expect them to surge as high as 8%, especially as inflation begins to cool in the housing market and beyond.
“The sharp drop in mortgage rates this week opened a window of opportunity for buyers who are looking to lock in their rate. At the lower rate, they not only save money on their monthly payment, but a significant amount in interest over the life of the loan,” says Realtor.com Manager of Economic Research George Ratiu.
But the good times aren’t likely to last for long, he says. “I still expect rates to potentially move back toward 7% in the next few weeks.”