MORTGAGE RATES

Mortgage rates will come down and just a matter of time. These past 24 months since 2019 has been red hot selling housing market with very low mortgage rates. Since June 2022 fewer homes has been sold and on the housing market longer. This is due to the spike in mortgage rates has doubles this year which severely limited the home buying power for many looking to purchase a home.  The average mortgage rate has risen over 7% and now hovering about 6% as of November 2022, this has never happened.

Mortgage rates have more than doubled in 2022 and is no surprise that these recent statistics are fueling some optimism among real estate agents. To put this more in content, a return to a normal spread between government borrowing rate and the home purchase borrowing rate will bring the 30 year mortgage rates down to around 6%. My gut tells me when it is all said and done, we will be hovering around the 5.5% and the 6% interest rate.

The federal government is sitting back and watching the rippling effects of the housing market 60 days after decisions have been made for the next move.This can give us confidence that mortgage rates are past their peak. When the dust settles, the bottom line is that many are going to refinance. Gonna be a bumpy ride until then. Good possibility the housing market stabilizing at the 5% interest rate maybe the next 3 to 5 years. In Reality home prices are projected to be lower across the United States due to higher mortgage rates that has been moderated by demand. This truly depends on what happens with inflation that is regulating decisions made by the federal government. Click link to request my free navigating The Buying Process

https://kevinstrawter.book.live/buyer-book

INFLATION

Inflation is the enemy of long term interest rates. This has been the whole battle that has driving the mortgage interest rates. As long as inflation remains high, you will notice higher mortgage rates to tame inflation. Experts indicate the market is finally is in the ugly cooling stages. What remains is the unknown as we move forward in 2023 with the financial markets and policy changes along with more unknown challenges to come. As the federal government continues to fight inflation, the word recession is rarely mentioned, however the requirements have be officially met to announce we are in a full blown recession. 

With inflation at a 40 year high and the federal government Jerome Powell in place they are expecting a few more moderate rate spikes to release the tension of inflation. The ultimate plan is as mortgage rates experience upward pressure through the end of 2022 for bring inflation down and ripple effect to bring housing prices down that will open up affordability on homes for many homebuyers. Interest rates today responds to inflation. Mortgage rates may pull back provided the inflation pressure ease. Click link to learn more about mortgage lenders /MORTGAGE-LENDERS---32819---32836---Orlando-Florida-6-20247.html

All and all these mortgage rates will drive home prices down between at least 18% in many areas of the country. This will be considered an official reset in the nation's housing market. Truly to understand the full spectrum of all of this, we are getting back to the norm. Yep! Time is up. Click link to learn more about inflation

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TRUSTED ADVISOR

These visual charts will immensely help you understand where we are heading at this present point in December 2022, however as a trusted advisor, professional realtor and a retired military veteran, I am here to serve you and always on the pulse of the housing market for the Dr Phillips and the Central Florida area. Stay connected and contact Kevin Strawter today at 850 496-6412 and stay tuned in this volatile housing market to purchase or for the sale of your home. 

Don't let this shifting housing market delay your dreams. Data reports home values typically appreciate over time and that gives your net worth a nice boost. If you are ready to start your journey to homeownership, reach out today and stay connected. Click link and get to know me more.

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