Source: Realty Biz News —
In July, the Federal government announced another 0.75% interest rate hike. So, if you’re considering applying for a new home loan in 2022, you can expect to pay a lot more for your mortgage. This is sure to impact the real estate housing market in some way, although so far things aren’t panning out as predicted.
The last two years have seen the hot real estate housing market cool slightly. Yet, prices aren’t following the expected trends.
Will the market for housing crash soon, or will it prevail? Here’s what the experts have to say.
Mortgage Rates Likely to Continue an Upward Trend
Mortgage fixed interest rates have already doubled this year. Economists say further increases could depend on several factors, including:
- Strong jobs reports causing a spike in interest rates
- No signs of inflation peaking, driving rates higher
- The prospect of the Fed front-loading their interest rate hikes may keep them stable
This last theory hinges on the prospect that more mortgage rate increases now mean a decline in rates later as the economy weakens.
Experienced realtors predict the federal government will raise rates at least three times this year to try and fight inflation. Due to this, most homeowners will choose adjustable-rate mortgages in anticipation of an eventual decline in interest rates.
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