Volatile Mortgage Market Poses Challenges for Homebuyers
The Federal Reserve made its ninth rate increase since last March in its ongoing fight against inflation, marking a quarter-point increase.
While this increase doesn’t directly affect mortgage rates, prospective home buyers are still facing unprecedented volatility in the market.
Mortgage rates have been bouncing around from below 5 percent to above 7 percent over the past year, making it difficult for homebuyers to budget effectively.
Mortgage lenders advise that it’s crucial for anyone looking to buy a home to stay in constant contact with an expert mortgage advisor.
It’s important to run the numbers both ways, up and down, to ensure that you’re comfortable with the range of payments you may be making.
Despite the market’s fluctuations, many people are still buying homes, viewing it as a good investment in the long term.
The National Association of Realtors reports that existing home sales have declined for the 12th consecutive month.
In the Sioux Falls Area, new listings dropped by over 24 percent in February.
Despite the decrease in traffic, Levo mortgage lenders say that plenty of people are still looking to buy homes, despite market concerns.
In summary, buying a home in a volatile mortgage market can pose challenges, but it’s still a good investment in the long run.
To make the most informed decision, it’s important to stay in constant contact with a mortgage advisor and be prepared for fluctuations in rates.