Consumers who had planned to become homeowners last year but delayed their purchase – for whatever reason – may be experiencing reverse buyer’s remorse. Interest rates, which started in 2022 at about 3.22 percent for a 30-year fixed-rate, were expected to rise to 3.8 percent during 2022. However, they’ve now risen past that figure, and economists predict that the upswing will continue throughout the year. Although this figure is for a 30-year fixed, the trend applies to all mortgage loans.
What’s Driving The Rates Up?
The trend upward for mortgage loans is attributed to several things, such as:
- Rising inflation: The spiraling inflation rate shows no signs of stopping, which directly influences the interest rates for prospective homeowners.
- Geopolitical conditions: Worldwide financial uncertainty makes everyone from lenders to borrowers hesitant to commit to a long-term contract at a specific rate.
- Federal Reserve: Actions by the Federal Reserve also contribute to the increased rates while they weaken the consumers’ purchasing power.
Some financial analysts predict that the rates for a 30-year fixed mortgage will remain above 4.0 percent for the duration of the year at least, although the speed at which they rise may slow somewhat.
How Does This Impact My Ability To Become A Homeowner?
Since rates show no sign of going down for the foreseeable future, those who are looking for homes for sale in Lakeland FL should waste no time contacting an agent. If possible, lock in a rate as soon as you decide on a home. Unless you can afford the payment that results from a higher rate, you may need to scale down on the home you want to a smaller residence that’s not as close to town. But just as waiting this year has cost you money, waiting longer will only cost you more money, so don’t procrastinate if you want to buy a home.
Is There A Positive Side To The Current Rate Rise?
As with most things that seem negative, there’s also a positive side to the current mortgage rate situation. Experts project a 9 percent increase in 2022 home values due partly to the rise in interest rates. So you’ll have more equity sooner than you had planned. Since there are currently more buyers than homes for sale, that can also add to your equity position and enable you to move up in less time.
Looking For Homes For Sale In Lakeland FL?
If you’ve decided to start your search for homes for sale in Lakeland FL, then call our real estate office at and speak to one of our dedicated realtors. Whether you have a home to sell before you buy or need to get a home before rates go any higher, they can help you locate the best house at the best rate in record time. So call them today, and let’s get started on finding you the best home in the best area at the best price.