Boston Real Estate for Sale

Boston Real Estate: Mortgage Rates Next Hike 2023

Q: Why do Boston real estate mortgage rates go up?

Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. ... The more banks can lend, the more credit is available to the economy.

According to the Fed, the next rate hike they anticipate will be sometime in 2023. And even though all this talk is more than likely already priced in, rates are still low amidst rising inflation. Look LO’s this is a gift. This is a huge gift and we hope you’re taking advantage of it. Over 40% of mortgage-holding consumers out there still have a rate over 4%. So go get ’em. Save some money on your downtown Boston condo

Boston Real Estate for Sale

Boston Real Estate: Q&A on Mortgage Rates

Why do Boston real estate mortgage rates go up?

Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. … The more banks can lend, the more credit is available to the economy.

When does the FED expect interest rates to go up again?

Interest rates will remain stable til 2023

What will be the main cause of a rate hike?

Simple answer, inflation

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Boston Real Estate: Mortgage Rates

Boston downtown condo buyers had another opportunity to snag ultra-low rates this week. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports.

“In light of the rising COVID-19 caseloads globally, U.S. Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data,” says Sam Khater, Freddie Mac’s chief economist. “The good news is that with rates under 3%, refinancing continues to be attractive for many borrowers who financed before 2020. But for eager buyers, especially first-time home buyers, inventory continues to be extremely tight, and competition for available homes to purchase remains high.”

The National Association of REALTORS® estimates mortgage rates to average 3.2% by the end of the year.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 29:

30-year fixed-rate mortgages: averaged 2.98%, with an average 0.7 point, rising slightly from last week’s 2.97% average. Last year at this time, 30-year rates averaged 3.23%.
15-year fixed-rate mortgages: averaged 2.31%, with an average 0.7 point, increasing from last week’s 2.29% average. A year ago, 15-year rates averaged 2.77%.
5-year hybrid adjustable-rate mortgages: averaged 2.64%, with an average 0.3 point, dropping from last week’s 2.83% average. A year ago, 5-year ARMs averaged 3.14%.

Boston Real Estate for Sale

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Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage

U.S. average rates on long-term mortgages rose this week though they remain at historically low levels. The key 30-year loan nudged toward 3%.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year home loan increased to 2.99% from 2.96% last week. By contrast, the rate averaged 3.55% a year ago.

The average rate on the 15-year fixed-rate mortgage rose to 2.54% from 2.46% from last week.

Homebuying demand continues as one of few bright spots in the pandemic-struck economy, especially for prospective buyers considering a first-time purchase. The government reported Tuesday that construction of new homes surged 22.6% in July as homebuilders bounced back from a lull induced by the coronavirus pandemic.

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