Published February 11, 2022
Report: Mortgage Rates Hit 4% For First Time Since 2019
Mortgage rates for a conforming 30-year fixed-rate mortgage have risen above four percent for the first time since December 2019, according to market data compiled by Optimal Blue. As of Friday, February 11, mortgage rates on a 30-year fixed-rate loan sit at 4.07%
The rise in mortgage interest rates are coinciding with the Fed's impending decision to raise interest rates as well as the recent U.S. Department of Labor report that revealed a 7.5% inflation rate in January, the highest mark seen in 40 years. Earlier this year, the Fed announced that it plans to make several rate hikes in 2022, with the first rate hike set to occur in early Spring. Mortgage rates on conforming 30-year fixed-rate loans bottomed out at 2.77% back in January 2021.
How Will Rising Mortgage Rates Impact Homebuying?
According to recent analysis conducted by First American Financial Corp, homebuyers already have $52,000 less homebuying power than they did in November 2021. As you can see in the graphic below, interest rates in November were at a full point lower than what they are today. That full point difference is what equates to the staggering $52,000 difference in affordability for a buyer in today's market.
Our Advice
As we slowly start to eek into the Spring season here locally in the Fargo-Moorhead area, we may start to experience a crazier-than-normal buying frenzy. With interest rates likely to continue rising, buyers are likely going to be more apt to start their home search sooner than anticipated in order to lock in a lower rate. The Spring season is always a busy one, especially here locally, but it's shaping up to be busier than normal if certain factors begin coming to fruition as they are expected to.
If you, or someone you know, is interested in meeting with a licensed agent or trusted local lender, we are here to help! Please give us a call anytime at 701-4-ASPIRE or send us a message on our website or social media platforms that are linked below. If you're thinking about selling, we'd love to tell you about the several listing options and packages we have available to you!
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