{"id":8263,"date":"2022-11-21T06:00:00","date_gmt":"2022-11-21T11:00:00","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8263"},"modified":"2022-11-21T06:00:00","modified_gmt":"2022-11-21T11:00:00","slug":"mortgage-rates-will-come-down-its-just-a-matter-of-time","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=8263","title":{"rendered":"Mortgage Rates Will Come Down, It\u2019s Just a Matter of Time"},"content":{"rendered":"
\n

\"Mortgage<\/p>\n

This past year, rising mortgage rates have slowed the red-hot housing market. Over the past nine months<\/a>, we\u2019ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the average rate<\/a> for financing a home briefly rose over 7%<\/a> before coming back down into the high 6% range. But we\u2019re starting to see a hint of what mortgage interest rates could look like next year.<\/span><\/p>\n

Inflation Is the Enemy of Long-Term Interest Rates<\/strong><\/h4>\n

As long as inflation is high, we\u2019ll see higher mortgage rates. Over the past couple of weeks, we\u2019ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zonda<\/em>, says<\/a>:<\/p>\n

\n

\u201cThe housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today\u2019s economy<\/em><\/strong>. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and\/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.\u201d<\/em><\/p>\n<\/blockquote>\n

What Does This Mean for the Future of Mortgage Rates?<\/strong><\/h4>\n

As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We\u2019ve seen nods of this over the past couple of weeks. As the Federal Reserve<\/em> works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk<\/em> says<\/a>:<\/p>\n

\n

\u201cMy current view is inflation will ease quicker than the Fed currently expects.\u201d<\/em><\/p>\n<\/blockquote>\n

As we look toward next year, we certainly hope he\u2019s right.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Mortgage rates will come down \u2013 it\u2019s just a matter of time. The hope is we continue to see more positive news on inflation, and that\u2019ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"MortgageThis past year, rising mortgage rates have slowed the red-hot housing market. Over the past nine months, we\u2019ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,134,88,84,86,118,89],"tags":[],"class_list":["post-8263","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-myths","category-first-time-home-buyers","category-for-buyers","category-housing-market-updates","category-interest-rates","category-move-up-buyers"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8263"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/8263\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}