Mortgage rates are surging faster than expected, prompting economists to lower their home sales forecasts

[1srelluc]

The average rate on the popular 30-year fixed mortgage hit 4.72% on Tuesday, moving 26 basis points higher since just Friday, according to Mortgage News Daily.

As a result of the recent spike in rates, economists are now lowering their home sales forecasts for this year.

Most estimates at the end of last year had the average 30-year mortgage rate hitting 4.5% by the close of 2022, but the war in Ukraine, rising oil prices and inflation have all lit a fire under interest rates. At this time in 2021, rates were about 3.45%.

Mortgage rates are surging faster than expected, prompting economists to lower their home sales forecasts

Damn, I would have prayed for a 4.75 rate with 20% down when Carter was POTUS.....Then again home prices were not near as retarded either.

 

[daveman]

I'm glad I got a good rate last year when we bought our house.

 

[Harpy Eagle]

The average rate on the popular 30-year fixed mortgage hit 4.72% on Tuesday, moving 26 basis points higher since just Friday, according to Mortgage News Daily.

As a result of the recent spike in rates, economists are now lowering their home sales forecasts for this year.

Most estimates at the end of last year had the average 30-year mortgage rate hitting 4.5% by the close of 2022, but the war in Ukraine, rising oil prices and inflation have all lit a fire under interest rates. At this time in 2021, rates were about 3.45%.

Mortgage rates are surging faster than expected, prompting economists to lower their home sales forecasts

Damn, I would have prayed for a 4.75 rate with 20% down when Carter was POTUS.....Then again home prices were not near as retarded either.

Just pure and plain profiteering by the banks and lenders. "Oh, gas cost more so we are going to raise our rates on home loans". There is no connection between these things, yet here we are.

 

[1srelluc]

Just pure and plain profiteering by the banks and lenders. "Oh, gas cost more so we are going to raise our rates on home loans". There is no connection between these things, yet here we are.

Come on man, I had you pegged for being smarter than that.

The money costs the banks more so what do you expect them to do, eat the cost? It's pretty basic stuff.

If you have a problem with that then talk to the fed.....It's their fault for getting people used to artificially low interest rates....It's also part of the reason that homes are way over-priced.

 

[Harpy Eagle]

Come on man, I had you pegged for being smarter than that.

The money costs the banks more so what do you expect them to do, eat the cost? It's pretty basic stuff.

If you have a problem with that then talk to the fed.....It's their fault for getting people used to artificially low interest rates....It's also part of the reason that homes are way over-priced.

While I do agree that the Fed got people used to artificially low interest rates, there is still no real justification for a 26 basis point raise since just Friday.

 

[1srelluc]

While I do agree that the Fed got people used to artificially low interest rates, there is still no real justification for a 26 basis point raise since just Friday.

If the fed had really done their job home rates should be just shy of 8% right now.

It's not completely their fault as what really could have been short term transitory inflation after the covid shut-downs was torpedoed by Tater & Company's inflationary policies (the gop is almost as guilty too) and that is why the fed signaled that they might even have to get more aggressive in the coming months in a effort to dry-up demand and slow things down a bit.

That's the reason that I think we will see a full-blown recession in 2023. Too much cheap money is still out there that's fueling inflation for it to hit this year so the fed will continue get more aggressive. At least that is my "Holiday Inn" prediction.