Over the last several weeks we’ve seen a slight increase with interest rates. Unfortunately, that’s not the only that that has risen. Gas prices and cost of living has also continued to rise. However, it’s still a good time to purchase or even refinance folks. Interest rates are slowing creeping up to the high 2’s low 3 percent’s. Fixed mortgage rates are at an all-time low during the pandemic. Which in most cases is still pretty good. It’s important that we shop around for better rates and lower fee’s, comparing and then making the right decision.
The cost of living will continue to rise especially the way things are going. The increased demand for houses is the reason why prices have risen. There simply aren’t enough homes right now to meet the demand and the vacancy rate for homes for sale have never been lower. According to CNN, nationwide homes have appeared overvalued 10-15% more when comparing price-to-income or price-to-rent ratios. “Overvalued housing markets are vulnerable to a meaningful price correction as mortgage rates eventually rise.” And because of that the federal reserve thinks the economy will return back to normalcy with interest rates. Despite homes being overvalued there are no real signs of the market crashing any time soon.