Why are Mortgage Rates on the Rise Again?

The FED started their Fund Rate cuts in September, but mortgage rates have steadily gone up since then. Why?

While many think news of rates cuts should push mortgage rates down, mortgages are actually tied more heavily to the bond market. Keeping an eye on what's happening there will provide more insight into what may come for interest rates in the future.

This is because if investors aren’t buying bonds, the bond market moves upward which affects mortgage rates negatively. While we still see rates lower than they were a year ago, this upward pressure puts stress on buyers and sellers.

As a seller, this time of year tends to slow down due to upcoming holidays, as many buyers put their search on hold until after the new year. In addition to this, we have a major election ongoing which causes additional volatility and makes both sides of the political spectrum nervous about what’s to come and how that may affect business, mortgage rates, the stock market, and the economy as a whole. 

All that being said, many investors have started to pour into the real estate market, and many people have chosen to sell now rather than later. This can be good for buyers who want to negotiate and for sellers who may have sat on the market for a while.

While we aren’t seeing drastic changes to prices, other terms have become very prevalent for buyers to buy their rate down, secure seller paid closing costs, and repairs prior to closing. As a seller it’s important to price aggressively in the current market to stand out from competition. Ensuring the home is tidy, decluttered, and easily accessible for showings is crucial as we enter the winter market.

If you have any questions about rates, what the market is doing, or aren’t sure if it’s the right time for you to purchase a home or to sell your current home, we’d be glad to have a consulting session with you to help with your next life move. Hope you’re enjoying these monthly newsletter updates! 

Have a wonderful month, 

Ian H. Ratliff 

Broker/Owner of RATLIFF…