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Market update – April 8th

Market Update

Market update – April 8th

Many home buyers are feeling overwhelmed with the uncertainty of the current housing market. Experts are predicting a steady increase in rates over the next few months. With the increased mortgage rates and the already high-priced market, some buyers are putting their search on hold. One positive aspect of this is that it could slow down the competitive market and bidding wars.

Even when looking at the increase in mortgage rates, they are still at a low historically. Over the last 20 years, rates have constantly fluctuated.

In the early 2000s, mortgage rates were between 5% and 11%. The average rate when looking at the years 2006 to 2008 was 11%. As the decade moved forward, the unforgettable housing market crash occurred in 2008. Homebuyers, at the time, were looking for affordable options with interest-only provisions. Property values decreased dramatically, leaving many homebuyers owing more on their homes than the property was worth. Many were unable to make their loan payments; more foreclosed homes were on the market. Loans were also defaulted due to the current state of the economy. Luckily, the market is constantly changing, and entering the 2010s, rates were different.

In 2010 rates were hovering around 4.69%, which is a decrease from the rates in 2008. By 2013, the housing and stock market had recovered, and the annual average rate was 3.98%. By 2019, rates were at a similar percentage, landing annually at 3.94%. The end of 2019 and early 2020 was the beginning of the pandemic. Rates at this time had dropped to an all-time low. In 2020, rates averaged 3.11% and by 2021, averaging at 2.96%. As Covid-19 cases decrease, the market is beginning to normalize again. Rates are still rising, and experts don’t indicate any significant drops soon. Compared to rates in the past, this is still a good market for purchasing a home. Don’t let the fear of rising rates keep you from purchasing a home this year. Contact one of our loan officers today to discuss if now is the right time to buy.

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