How To Approach Rising Mortgage Rates as a Buyer

Dated: April 24 2022

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Message From David Hittle, Realtor - United Real Estate Louisville

As Spring turns to Summer the Housing Market starts to heat up. Today, we have just over 1,000 homes active on the market. Typically, around this time we would start to see 3,000+ homes hitting the market. We will have to wait and see how this year's housing market turns out.

This week, mortgage interest rates, according to Fannie Mac, jumped to the rate of 5.11% from 5.00% last week. Ever since the Federal Reserve raised interest rates, mortgage interest rates have continued to tick higher and higher. The Federal Reserve is on track to raise interest rates yet again, and at least 4 or 5 more times this year. The 5% interest rate is the highest mortgage interest rate we have seen in 11 years, and the Federal Reserve being on track to continue to raise rates mean 5% will not be the ceiling to what we are going to see in mortgage interest rates this year. If you are wanting to move this year, waiting is going to cost you, I would suggest getting your move going now, finding the home you want to live in and getting your mortgage rate locked-in.     

For March in the Louisville/Lexington Market there were 2,938 (+34) Active & Pending Single Family Homes/Condos with 1,545 (+9) Sold.

There is a 33.40 (+0.3) average days on market in our area with 0.78 (-0.01) Months of Inventory Available.

March 2022 saw an Average Selling Price for a home at $281,095 compared to $252,378 in March 2021. - A gain of over $28,000 in just one year!

1457 Homes were sold in March of 2022 compared to 1555 in March of 2021.

Median Selling Price for homes in March of 2022 closed at $240,000 compared to $214,900 in March of 2021.

I predict that mortgage interest rates will continue to rise higher, with average rates hitting 5.11% this week meaning that retail rates on the open market will be much higher than that. As mortgage rates rise buyers may get priced out of the market and not be able to afford the homes they were looking for. Home prices are not projected to fall this year but may level off at a high level, even so, prices will continue to rise as other buyers make up for the priced-out buyers. With the Federal Reserve indiciating they are going to continue to raise rates, we could very well see rates hitting 8 to 10% which is certain scarey for our market!

Contact me today, so we can discuss all of your options and get you on the right path to homeownership and the American Dream!

David Hittle, Realtor

United Real Estate Louisville

Shop Kentucky Homes

502-489-1135 (Call or Text)

Shopkentuckyhomes@gmail.com

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David Hittle

Hello, and welcome to my website - my name is David Hittle and I'm a VA Certified Realtor and NAR e-PRO with United Real Estate Louisville. The ultimate goal for a Realtor is to provide the client wit....

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