As mortgage rates hit 20 year high, Tampa Bay housing market braces for a cool down

Source: Tampa Bay Times — 

A home-buying frenzy triggered by historically low mortgage rates helped elevate Tampa Bay from a hidden gem to a real estate hot spot over the past two years. But now that rates have shot back up, experts say buyers are finally hitting the brakes.

“Consumer confidence is down,” said Kristine Smale, senior vice president for the real estate analytics company Zonda. “People are afraid to buy at the top of the market.”

The average 30-year fixed mortgage rate crossed 7% last week, the highest it’s been in two decades, according to mortgage buyer Freddie Mac. The Federal Reserve is expected to announce its sixth interest rate hike this week, which could cause mortgage rates to climb even higher.

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