Spring is here, COVID is hiding, war in Ukraine and rates are higher. Sounds like the beginning of an updated We Didn’t Start the Fire!
Yes, fixed rates are in the mid 4s but will they go up more? We have all heard that the Fed will increase their rates another 4 or 5 times but experts say that these increases are already “baked into the pie” as far as mortgage rates go. Meaning, mortgage rates have already reacted. We agree. We also think that even though you’ll get a loan now, you’ll likely be refinancing within 2-3 years when rates fluctuate back down again. So, while it may be your forever home, it’s not your forever rate. This will also help keep the prices of home from increasing so quickly and no more 10-15 offers per house.
Owning a home is also a smart way to hedge against inflation. As inflation increases, you’re paying the same amount (monthly) on an appreciating asset on a fixed rate.
2022 will be a positive year, so give us a call and find your dream home!
Praying for peace,
The McCormick Team