Home mortgage rates lowered on Monday after the Federal Reserve announced that it would raise interest rates last week. The Federal Reserve has been raising interest rates in order to get inflation under control as it was as high as 11.3% in June. Mortgage broker, Chad Harris, told me that Fannie Mae and Freddie Mac feel as if the Fed's actions, raising interest rates, is working to curve inflation. Some home interest rates (depending on the borrower's credit) were seen lowering from 5.3% to 4.9%. According to the National Association of Realtors, home purchasing became 50% more expensive from last year to this year in large part due to rising interest rates. That makes rates lowering by .4% good news for home buyers. If you put your home purchase on hold because of rising interest rates, now may be the time to get back into the market. There is also more inventory available in the Chattanooga real estate market.
Sources tell me that the threat of a recession, the economy shrinking for 2 consecutive quarters, typically puts downward pressure on home mortgage rates and on commercial mortgage rates.
Strangely enough, as interest rates have risen, home prices have continued to rise. Home sales are starting to slow to a more normal pace now. The days of 6+ offers on a property at one time have probably passed for a while, but do expect more than one offer on entry level properties in the Chattanooga area.
Looking to navigate the changing real estate market?
The Walldorfs have weathered many recessions and are used to change. Call Nathan Walldorf to buy or sell your home. 423-544-7700