Mid-Year Market Update: Outlook on Rates & Housing
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Here is your Monthly Mortgage Update for June 2022. In this month’s video I review a mid-year update on interest rates, the housing market, what the rest of the year could possibly look like, and if it’s still a good time to buy.
📈 Mortgage Rates
Currently rates are in the 5’s. Over the last few months, the Fed has been raising interest rates and have been pulling back on other items, which is referred to as Quantitative Tightening . They are removing some of their asset purchasing programs that have kept rates low for a long time.
🏠 The Local Impact
The local market here in Shasta County is still hot. We are still facing the same supply and demand issues. We are however seeing less homes with multiple offers, and slowly but surely, we are seeing more inventory on the market. A large part of this is due to the rising interest rates deterring First Time Home buyers from entering the current housing market.
💰 Recession, Inflation, & Stagnation
Many terms are being tossed around, and a lot of you are wondering “Where is this going?” Now I don’t know for sure, but here’s what I do know, the Fed has come out and said that they will be raising rates two more times this summer, in June and July. They have also said they will be selling off their balance sheet. Both changes could have a negative impact on rates as we head into the summer months. There are a lot of economists predicting, what goes up, must come down. Which means, we will most likely see low rates again in the very near future. This is something we will certainly keep an eye on and will continue to keep you updated as we know more.
🤔 Can I buy in this Market?
Many people are wondering if it is still a good time to buy and I’d like to break down a few things to consider. The average mortgage in Shasta County on a home priced at $300k, equates to a difference of $200 a month when we compare rates at the beginning of the year to the current rates. For those who are willing to cut back expenses or understand the trends in rent rising more each year, it still makes sense to buy a house.
👋🏼 Let’s Chat.
Lastly, from the bottom of my heart, thank you so much. We have such a great community here and it has been a fantastic year so far. If there is anything I can do for you or anyone you know, feel free to call me at the office. I hope you and your family are doing well, take care and talk to you soon. Have an AMAZING SUMMER.