{"id":21313,"date":"2022-06-17T09:26:00","date_gmt":"2022-06-17T16:26:00","guid":{"rendered":"https:\/\/www.morgantaylorhomes.com\/?p=21313"},"modified":"2022-06-20T09:41:18","modified_gmt":"2022-06-20T16:41:18","slug":"buying-a-house-with-rising-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.morgantaylorhomes.com\/buying-a-house-with-rising-mortgage-rates\/","title":{"rendered":"Is Buying a House Advised Now with Rising Mortgage Rates?"},"content":{"rendered":"\n
After a record low of 2.65% in 2021, forecasters projected mortgage rates to rise between 3.27% and 3.88% in 2022.<\/p>\n\n\n\n
Now they\u2019re almost as high as 6% for the typical 30-year fixed mortgages.<\/p>\n\n\n\n
Normal variables that affect home-buying decisions may not necessarily apply this year due to unusual market fluctuations. High mortgage rates and other challenges in the housing market, together with the inflationary trend, depict a fuzzy horizon.<\/p>\n\n\n\n
Despite rising mortgage rates, we believe you\u2019ll be glad in the long run if you build a new home<\/strong><\/a>.<\/p>\n\n\n\n We saw rates rise at a historical level in May 2022. The federal reserve raised rates half a percentage point, the largest rate hike in decades.<\/p>\n\n\n\n However, adjustable-rate mortgages<\/a> and home equity loans are among the mortgage products that the central bank directly adjusts. Fixed mortgage rates tend to follow decade-long Treasury yields.<\/p>\n\n\n\n Chief economist Mike Fratantoni<\/a> suggests that a plateau in mortgage rates is likely at current levels. He expects potential home buyers to re-enter the housing market after the climbing mortgage rates settle down.<\/p>\n\n\n\n Competing forces, such as slow economic growth, have pushed average rates higher in a tug of war for the short term. As we\u2019ve already stated, it\u2019s difficult to predict where the home construction market will turn for the rest of 2022, let alone 2023.<\/p>\n\n\n\n No matter how you look at the current landscape for rising mortgages, it is clearly the end of the low rates that followed the 2008\/2009 global financial crash.<\/p>\n\n\n\n The supply chain of homes for sale is another complicated aspect of the current market. According to The Census Bureau, new home sales dropped 12.6% in March 2022 than the same month in 2021.<\/p>\n\n\n\n In spite of the figures in the paragraph just above, the competition for home buying continues to be hot. Supply and demand stoke the flames of bidding wars when a smaller number of homes are for sale.<\/p>\n\n\n\n Although homes sold more quickly in April 2021 compared to the same week ending April 24 in 2022, current home sellers are seeing an advantage.<\/p>\n\n\n\n 55 percent of the sellers were paid more than the listing price compared to 45 percent the same week in April 2021.<\/p>\n\n\n\n The competition for building homes is flaming hot because our nation is smack in the middle of a historic housing shortage.<\/p>\n\n\n\n But because of spiking interest rates and record costs of buying a home, home builders<\/strong><\/a> have less confidence in the ability to sell homes they build.<\/p>\n\n\n\n For a single-family home, builder confidence is the lowest it has been since June 2020, which followed 6 months in a row of decline.<\/p>\n\n\n\n Freddie Mac recently reported that our country is about 4 million homes shy of what\u2019s required to keep up with the demand. Home prices have climbed significantly in recent years.<\/p>\n\n\n\n Therefore, it may be in your best interest to build rather than buy a residential property, even considering higher mortgage rates.<\/p>\n\n\n\n It\u2019s harder to afford building a home since mortgage rates have gone up but rent prices have also skyrocketed, rising almost 20% year over year.<\/p>\n\n\n\n Considering exorbitant rent costs, even with the shortage of homes and spiking mortgage rates, buying a home is likely the right move for those who can afford it.<\/p>\n\n\n\n Mortgage bankers, real estate agents, and custom home builders<\/strong><\/a> have seen construction schedule delays, increased construction costs<\/strong><\/a>, and higher building materials, among other trends.<\/p>\n\n\n\n We\u2019d be glad to advise you personally on the fluctuating market and whether you should build or not.<\/p>\n\n\n\n If you are thinking about building a home, we\u2019re here to help. Our team of architects, designers, builders, and other experts can assist you in navigating the ever-changing home building market.<\/p>\n\n\n\n We\u2019ll prepare you for timeline deadlines, difficulty obtaining building materials, and other roadblocks. And you can trust us to build you a reliable real estate property that is imprinted with your family\u2019s personality.<\/p>\n\n\n\nAre Mortgage Rates Going Up or Down in 2022?<\/strong><\/h2>\n\n\n\n
How Hot is the Competition for Home Buying?<\/strong><\/h2>\n\n\n\n
Is Now a Good Time for New Home Construction?<\/strong><\/h2>\n\n\n\n
Is Now the Best Timing for New Home Builders?<\/strong><\/h2>\n\n\n\n
Build with Confidence with Morgan Taylor Homes<\/strong><\/h2>\n\n\n\n