Expert Forecasts on Mortgage Rates
If you’ve been thinking of buying a home, you may have been watching what’s happened with mortgage rates over the past year. It’s true they’ve risen dramatically, but where will they go from here, especially as the market continues to slow?
Mortgage rates have nearly doubled to around 6.5% from the beginning of this year, but they may not have peaked, putting pressure on affordability for homebuyers.
The average 30-year fixed mortgage rate was 3.35% in early January, according to Freddie Mac. By mid-March, it had jumped to 4.46%. And by the end of May, it had reached 6.07%. Rates have climbed even higher in recent weeks, hitting a recent high of 6.49%, according to Mortgage News Daily.
The jump in rates has been driven by a variety of factors, including rising inflation and bond yields as the economy continues to improve. The Federal Reserve has also hinted that it may start scaling back its stimulus efforts later this year, which could cause rates to rise even further.
The same effect is being felt in the Real Estate industry in Kalamazoo.
Todays Mortgage Rates in Kalamazoo
Today’s mortgage rates in Kalamazoo, MI are 6.891% for a 30-year fixed, 6.125% for a 15-year fixed, and 5.570% for a 5-year adjustable-rate mortgage (ARM).
As you think about your homeownership goals and decide if now’s the time to make your move, the best place to turn to for that information is the professionals. Here’s a summary of the latest mortgage rate forecasts from housing market experts.
Mortgage Rate Projections in Kalamazoo
As predicted by our favorite lenders at GVC mortgage, rates in Kalamazoo, Michigan could reach 8% by the end of the year. While this may seem like a large increase, it is important to remember that rates are still historically average This jump is not unexpected, and is actually in line with what was seen in previous years, and is being used to slow down some of the hyper inflation that was felt in home prices over the past several years. GVC mortgage is still predicting that rates will remain relatively stable throughout the rest of the year.
While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they’ll start to stabilize in the months ahead. According to the latest projections, mortgage rates are expected to hover in the low to mid 5% range initially, and then potentially dip into the high 4% range by later next year.
How Rates Affect Kalamazoo Real Estate
That could bring you some welcome relief. So far this year, mortgage rates have climbed over two percentage points due to the Federal Reserve’s response to inflation, and that’s made it more expensive to buy a home. And wondering if the rise in rates will continue is keeping some prospective buyers on the sidelines.
But now that experts say mortgage rates should stabilize, this gives you a bit more certainty about what they think the future holds, and that may help you feel more confident about your decision to buy a home.
Where to Go From Here
Whether you’re looking to buy your first home, move up to a larger home, or even downsize, you need to know what’s happening in the housing market so you can make the most informed decision possible. Based off of the data that we’re seeing in the market it makes the most sense to buy if you’re currently looking for more space, less space, or need to move for a job. It’s not the same as making the move in early 2020 with 2.5% interest rates but you’re still able to get a more affordable payment than with renting.