Mortgage rates hit a 20 month high

Rising mortgage rates are coming
Mortgage rates are on the rise.

Although still low by historical standards, the 30-year fixed mortgage rate hit 3.22% in the first week of January. This figure represents the highest 30-year fixed rate mortgage rate that we have seen in 20 months. In fact, a year prior the 30-year fixed-rate was 2.65%. In the final week of 2021, we saw this same rate at 3.11%.

The effect of inflation, economic growth, & tight labor market

With inflation out of control, the Federal Reserve has already announced that it will begin dialing back ts monthly bond purchases, which are intended to lower long-term rates. In addition, experts expect robust economic growth and a tight labor market to continue to push rates higher. Although we should still see low rates by historical standards, each increase of these rates will further diminish buying power for prospective home buyers.

Summary

Overall, the job market has recovered nicely since the initial days of the pandemic that forced a record-setting economy to be halted due to lock downs. During this time, the real estate market has been one of the primary drivers of our economy. Permanent changes to the work environment such as the popularity of work-from-home policies will continue to impact real estate markets in places like South Florida. Looking ahead, we do not see the demand for South Florida real estate diminishing any time soon.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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