🤔 Rate Riddle: Why Are They Still Climbing? (And What You Can Do)

Yes, I know…it seems like every time we turn around, mortgage rates are a little bit higher recently! It's enough to make your head spin, right? But don't worry; I'm here to break it all down for you and offer some guidance in this shifting market.

Here's the lowdown:

— Rates keep on truckin' upwards. Even with a relatively quiet news week, rates continued their upward climb. Seems like the bond market is reacting to the strong economy and whispers of persistent inflation.

— Freddie Mac reported the average 30-year fixed rate rose just .10 percent this week. Yes, it's higher than last week, but let's keep things in perspective – it's still lower than it was a year ago!

— Why the upward trend? Well, it's a combination of factors. The economy is doing well (which is generally a good thing!), but that also means inflation might stick around longer than we'd like. Plus, our national debt keeps growing, and that puts upward pressure on rates and there’s our presidential election on the horizon. We also have a very important Jobs Report coming out this week and with strikes and hurricanes, there’s increased uncertainty about how those events will affect the job market. And we know, uncertainty creates volatility, so we may see rates continue to move around quite a bit. 

But here's the interesting part:

— Home prices actually dipped a bit. According to a recent report, home prices decreased by 3.1 percent between August and September. This could be a sign that affordability is starting to improve, even with rising rates.

— And don't forget about the power of homeownership! That same report highlighted how homeowners build wealth over time through equity. So even though buying a home might seem daunting now, it still can be a smart long-term investment.

So, what does this all mean for you?

— Stay informed. The market is volatile right now, so it's important to stay up-to-date on the latest news and trends. (That's where I come in! 😉)

— Don't panic. Yes, rates are higher, but they're still historically low. Don't let fear keep you from achieving your homeownership dreams.

— Get pre-approved. This will give you a clear picture of what you can afford and help you move quickly when you find the right home.

— Talk to me! I'm here to answer your questions, guide you through the process, and help you find the best mortgage options for your unique situation.

Even though the market is a bit unpredictable right now, there are still opportunities out there. Let's work together to find the perfect scenario for you!