Mortgage Interest Rates Update for August 31, 2022
Mortgage interest rates have substantially gone up over the past few weeks.
And with this week‘s feds’ announcement that they are expecting to increase interest rates to continue slowing down inflation we can expect rates to continue to climb.
Let’s look at the average interest rates for this week.
30-year mortgage rate: 5.98%
The average 20-year fixed-rate mortgage currently sits at 5.94%
15-year fixed mortgage rates are averaging 5.20%
10-year mortgage rate: 5.22%
5/1 ARM rates are averaging 4.42%
Now I know what everyone might be thinking that we are headed for a housing crash. But that’s far from the truth we are still seeing low inventory in most markets and pretty high buyer demand.
What we are seeing is buyers are taking longer to make a decision on writing offers.
We will see a price correction in overheated markets but overall home prices will continue to go up year over year.