The fact that mortgage rates are rising is not surprising. Mortgage rates tend to fluctuate with federal funds rates, and the Fed has been transparent about its intention to quickly raise these rates. Inflation has also exacerbated the problem.
But it is the extent of growth that has made some experts scratch their heads. Matthew Speakman, an economist at
Zillow, told ABC News in an email Wednesday that few people can predict exactly how far and how fast they are going.
Speakman tried to look forward, adding: "There is little incentive for a sharp drop in interest rates in the near future, but that doesn't necessarily mean they will continue to run away at this rate."
In addition, the impact of rising mortgage rates on potential home buyers is complex. Higher mortgage rates usually reduce demand, thus lowering the price of the home. While home prices are indeed falling, mortgage rates today are not as low as people expect.
Some experts believe that record high inflation and consumers' continued emphasis on remote work are changing the environment. Today's market is more complex, said Daryl Fairweather, an economist at Redfin.
This is like a confrontation between buyers and sellers. Buyers can’t afford higher prices, and sellers don’t want to sell for lower prices,” she said.
is exactly these high prices, coupled with high interest rates, a dilemma for many potential buyers.
Twitter and other social media platforms are often popular, and individuals lament their home buying experience. One Twitter user wrote: “In this economy, trying to buy a house is the most frustrating process.” ”
While many of these people’s concerns make sense, Brian Quigley, bond portfolio manager for Vanguard, has some reassuring news.
Quigley told ABC News that after the bubble burst in 2007, we are unlikely to experience a housing crash.
In concerns about the recession, high inflation and high interest rates, the situation may look dim, but these numbers suggest that this is not a great recession. And, like every market, something up has to go down. Ultimately.
Fairweather said the good news is, if you can’t afford a house right now, keep a close eye on the market. You may be able to afford it in a few months.
