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Mortgage Rates Rise Again, Passing 3% Threshold

The Freddie Mac fixed rate for a 30-year loan rose this week, despite the downward trajectory of the 10‑year Treasury yield. The rate rose 6 basis points to 3.05%, as investors reacted to higher-than-expected inflation and more than 10 million unfilled job openings. Investors are conflicted about the economic momentum, with clear signs of growth on one hand, and the unknown of an expected monetary tightening on the other. With inflation at a 30-year high and holding, mortgage rates are expected to continue rising.

For real estate markets, financing costs remain favorable, offering first-time buyers a strong incentive to keep looking. Halfway through October, the number of homes for sale has improved compared to the overheated first half of this year, leading to slower price growth. It seems that buyers and sellers are finally taking a step back from the pandemic-induced stampede of the past year to regain their footing and reassess their next steps. Today‚Äôs buyers should evaluate the impact that spending an extra $125 a month on a median home mortgage will have on their monthly budgets and longer‑term finances.

Source: National Association of Realtors, www.realtor.com.

Are you considering selling and/or purchasing a home across Bucks, Montgomery, Delaware, Mercer, Burlingotn or Phialdelphia? More than ever, you need expert, professional representation. Before you list your home for sale, call The John McClintock Team at 267‑759‑9518 for no obligation recommendations on dealing with bids, realistic prices and precise timing.

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Information is deemed reliable but not guaranteed.