Mortgage Rates Down a Full Percent from Recent High
Mortgage rates have been one of the hottest topics in the housing market lately because of their impact on affordability. Especially in sought-after areas like South Lake Tahoe, where the beautiful natural scenery and world-renowned ski resorts make it a hot spot for both residential and vacation properties, these changes in rates can have a significant impact on potential buyers.
There’s big news for mortgage rates. After the latest reports on the economy, inflation, the unemployment rate, and the Federal Reserve’s recent comments, mortgage rates started dropping a bit. And according to Freddie Mac, they’re now at a level we haven’t seen since February. To help show the downward trend, check out the graph below:
Maybe you’re seeing this and wondering if you should ride the wave and see how low they’ll go. Particularly in South Lake Tahoe, where the housing market is competitive, this could be a prime opportunity.
If that’s the case, here’s some important perspective. Remember, the record-low rates from the pandemic are a thing of the past. If you’re holding out hope to see a 3% mortgage rate again, you’re waiting for something experts agree won’t happen. As Greg McBride, Chief Financial Analyst at Bankrate, says:
“The hopes for lower interest rates need the reality check that 'lower' doesn't mean we're going back to 3% mortgage rates. . . the best we may be able to hope for over the next year is 5.5 to 6%.” And with the decrease in recent weeks, you’ve got a big opportunity in front of you right now. It may be enough for you to want to jump back in.
If you wait for mortgage rates to drop further, you might find yourself dealing with more competition as other buyers re-ignite their home searches too. This is especially true in South Lake Tahoe, where demand often outpaces supply and competition for properties can be fierce.
Bottom Line
If you’ve been waiting to make your move, the recent downward trend in mortgage rates may be enough to get you off the sidelines. Rates have hit their lowest point in months, and that gives you the opportunity to jump back in before all the other buyers do too.
If you’re ready and able to start the process, particularly if you're looking in South Lake Tahoe, reach out and let’s get started.
