This isn’t the story I thought I’d be sharing.
As we wrapped up March, we saw increased inventory hit the market in our area. For a split second, I thought I'd be writing to you this month to tell you that this rise in inventory had shifted the balance of the market.
Then all of the new inventory sells each weekend, with many homes receiving multiple offers. So while we thought interest rate hikes would cool the market, until we have a significant boost in inventory, expect things to continue moving fast.
Instead, I want to use this email outreach to shed some light on how recent banking issues are impacting interest rates and what we expect for the rest of the spring and the year.
Here’s a breakdown:
Rising interest rates and the banking sector
The Federal Reserve has been steadily increasing interest rates to stem the tide of inflation. These increases have impacted mortgage rates, adding to affordability challenges for buyers. In March, a global banking crisis came to a head when Silicon Valley Bank collapsed. Thankfully quick action prevented several other banks from a similar fate.
Mortgage rates this spring
We have seen a wave of people pulling money from the market and shifting it toward less risky assets like U.S. Treasury notes and bonds. The mortgage rates, which tend to follow Treasury yields, are falling as a result. Yet, with the banking system under stress, loan requirements will likely become more stringent and keep rates from a significant descent. Considering these factors, we anticipate lower rates, but not dramatically lower rates, this spring.
Mortgage rates long-term
Over the second half of the year, however, inflation is forecasted to slow, and rates are expected to trend down as a result. In fact, the Mortgage Bankers Association anticipates a 30-year fixed rate mortgage falling to somewhere around 5.3% by year-end. Hopeful news all around!
Bottom line? In the immediate, for better or worse (depending if you are hoping to list or buy), there seems to be no end in sight to this seller's market. However, anyone can win in this market with the right strategy and team behind them!
Need some help navigating the months to come?
Sending Agent’s Name
April’s Top Three: Mortgage Agents
At Rutledge Properties, we are fortunate to be a part of a fantastic network of professionals who support buyers and sellers—from lenders to inspectors to home stagers and more. Here are three of the mortgage agents we work with often if you need a starting place to secure financing for your home purchase.
- SueAnn Sheehan, First Republic Bank (781.718.6130)
- Catherine Long, U.S. Bank (508.789.9599)
- Keith Hapenney, Leader Bank (781.474.5082)
We don't just help you buy or sell a house; we welcome you home!
Rutledge Properties is an independent, women-owned local real estate brokerage. We’ve been helping clients in the Metrowest area buy and sell their homes since 1978.
Because we are not part of a big, impersonal chain, we get to do things our way—and our way is all about you. Our clients are our neighbors, and we are committed to putting their needs first every time. We leverage our insider knowledge about the community, industry-leading technology, dynamic strategies, and our worldwide network to provide a level of service that keeps Rutledge clients keep coming back to us, move after move.
Contact me for a free market analysis or to discuss your homebuying goals!