Some people are concerned that interest rates are accelerating too quickly and will get out of control, but that won’t happen. If you look at the graph in the video above, the blue area shows where interest rates have been from January 2018 until the present day. They’ve been as low as 2.5% and as high as 5%, which is still extremely low compared to the historical average. We’ve seen rates as high as 12% to 14% in the past. When I bought my first house in 2005, my interest rate was 6%, which was a very good rate for the time.
Looking back at the graph, the orange area shows where Fannie Mae and Freddie Mac predict rates will go through June 2023. At the end of this summer, they believe rates will be at about 3.7% and will increase slightly over the following three quarters. Interest rates will be nowhere near alarming status. Rates rising a little isn’t a bad thing, and they certainly won’t get out of hand.
If you’ve been concerned about interest rates and that’s influenced your real estate plans, I believe you can rely on these expert projections. If you have any questions about interest rates or what’s happening in the real estate market, reach out to us via phone or email. We would love to help you.