Interest Rates Soar!
4.67% is this week’s average rate for a 30-year. Meanwhile, the fixed-rate mortgage is up from last week’s 4.42%. One year ago the 30 year rate was holding steady at 3.18%!
What does this mean? For starters, this is a good indicator that rates will likely increase over the year.
What does this mean for the consumer? It is very clear that consumer demand continues to drive the market. Home prices are up 15% over the past year with some cities showing an increase in as much as 30%. Ultimately, higher home prices, a shortage of homes on the market with even higher interest rates, makes home buying a more challenging experience as the spring home buying season begins.