30 Year Fixed Approaches 7%
30 year fixed rates settled just below 7% this week continuing the dramatic rise that started at the beginning of the year. Rates are at their highest levels since April of 2002, but are still just below the historical average of 7.5%. The fact is that we have been spoiled with low mortgage rates for a very long time and it remains to be seen how rising rates will affect our overall real estate market in South Florida. Job and wage growth are still strong, but inflation and recession fears may drive demand down just a bit. This is not necessarily a bad thing for our market. More inventory and price stabilization may not be what sellers want right now, but getting back to an equilibrium would be better for our overall real estate market.
