Home Mortgage Rates Rise After Federal Reserve Interest Rate Hike – NBC 7 San Diego

The US Federal Reserve announced that it would take a series of measures to slow the rate of inflation.

In March, the Federal Reserve approved an interest rate hike of 0.25%, the first hike since 2018. Following the actions taken by the Federal Reserve, mortgage rates are soaring. The average rate for a 30-year fixed rate mortgage is 4.72%.

“It’s actually a pretty big increase just in, you know, less than three months, and so when interest rates go up, of course, you know the payments people have to make on mortgages are also increasing, and that means it is becoming less affordable to enter the market,” said Professor Allan Timmerman of UCSD.

Rising mortgage interest rates are causing some buyers to plan their future home purchases.

“I have some pretty active buyers right now who are already anticipating, they’re trying to be more conservative with their budget,” said San Diego realtor Allan Uy.

Due to rising interest rates, some economists are lowering their 2022 home sales forecasts.

The Federal Reserve signaled that it would raise the interest rate at each of the remaining meetings of the year.

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