As you may have heard, interest rates continue their upward climb. This week, Freddie Mac reported the 30-year fixed rate increased by .07 percent. While not every borrower will see this exact increase, the trend is clear: rates are higher now than they were at the start of the year.
What’s Driving the Increase?
Despite the rate rise, a surprising bit of good news is that homebuyer demand remains steady. In fact, sales of newly built homes had their biggest jump since December 2022! With rates likely to stay elevated, many buyers are deciding to move forward rather than wait. Economic reports, including the Employment Cost Index, point to continued pressure on prices and inflation. This influences the Fed’s policy, making higher rates more likely.
Looking Ahead
Wednesday, the Fed will release their latest announcement. While no immediate rate changes are expected, we might hear hints about their future plans. Later this week, we have several key economic reports, including the big jobs report, that could move the market.
The Buyer’s Perspective
Even with volatility, this market offers opportunities. If you’ve been considering a purchase, don’t let fear of higher rates paralyze you. Now’s the time to talk strategy! Let’s look at your financial goals, explore mortgage programs, and find a path that makes sense for you.
Partnering with You
My commitment is to guide you through this dynamic market, whether you’re a client ready to jump in, a prospect considering options, or a valued referral partner. Together, we can navigate these changes and achieve your homeownership goals.
Reach out if you have any questions. I’m here to help!
