How Rising Rates Affect Housing Market

How Rising Rates Affect Housing Market

The rising mortgage rates might finally lead to a slowdown in price growth. As some buyers temporarily drop out of the market, remaining buyers may expect to see lower asking prices. 

Even if rates continue to rise, HousingWire.com predicts "some small shifts in the market, and a short window of opportunity for eager buyers."

According to Investopedia.com, as long as salary and economic growth continue, home buyers can expect some of the rising mortgage rates to be offset. 

"From a historical standpoint, a 5% mortgage rate is still remarkably low. And a mortgage today with a fixed rate for the next 30 years is still considerably cheaper than historical comparisons," Freddie Mac reports.

The average 30-year fixed-rate mortgage in 1986 was 10.19%. In 1996, it was 7.81% and in 2006, it dropped to 6.41%. Then in 2009, the rate dipped to 5% and has remained historically low for more than a decade. 

Potential home buyers should keep working on improving their credit scores. Savvy buyers will continually monitor their savings and spending to qualify for the best mortgage rate possible when it's time to buy. 


Karin Waterschoot-Perez Headshot
Author:
Phone: 614-774-1741
Dated: June 23rd 2022
Views: 38
About Karin: Executive Vice President of Sales Experienced Realtor, Karin Waterschoot-Perez, currently serves ...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

What Does Contingent Mean On A Listing - When you see the word
Why Buy Instead Of Rent - Why Buy Instead Of Rent?CHRIS
How To Increase Your Zestimate On Zillow - Determining the value of your home
Why Not To Skip A Home Inspection - In a highly competitive market,

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Jennifer Gonzalez
9078 Union Centre Blvd #350
West Chester Township, OH
513-823-0983
513-318-0117

Other Locations