Make the most of the market and keep a positive perspective
Over the course of the last year, what was once a red-hot housing market has experienced a cool-down. Home sales have been slowing, and interest rates are rising as the Federal Reserve continues to try and tame inflation and soaring prices.
Rates are currently sitting at their highest point since late 2008, and are more than double their level a year ago. Any time interest rates rise and the market slows down, concern is understandable – but there are always silver linings, and viewing the market from a broader historical perspective is important.
A few of those silver linings include: • Interest rates remain historically low: Since the end of 2021, mortgage interest rates have jumped by more than 2 percentage points, climbing above 6% as of September 2022.
As a result, mortgage payment amounts have also risen. It’s easy to look at rising interest rates and higher mortgage payments and worry – but when viewed in perspective over the course of the last several decades, rates are still very low.
