Mortgage rates continue to increase at the start of this year. Historically, we are still in a very good spot for major savings on a mortgage.
See the charted history of the average fixed-rate mortgage over the last 69 years. The low point hitting in 2021 and the high point back in 1981. While mortgage rates are about .75% off their historic lows hit last year, they are still spectacular when compared to all other years.
With inflation now exceeding 7% in this country, mortgage rates have increased, and with labor and supply shortages that still exist, we don’t see mortgage rates coming down again in the near future. Housing inventory remains low, and buyer enthusiasm still remains high, hinting of more price appreciation this year.
The November S&P Case-Shiller 20-City Home Price Index was up 18.3% annually from 18.5% in October and was up 1% monthly from October. The National Index rose 18.8% annually from 19%, up 0.9% monthly.
Craig Lazara from Case-Shiller said, “We continue to see very strong growth at the city level. All 20 cities saw price increases in the year ended November 2021, and prices in 19 cities are at their all-time highs. November’s price increase ranked in the top quintile of historical experience for 19 cities, and in the top decile for 16 of them.”
Now is the time to get into the market as we do not see mortgage rates going down any time soon.
To run scenarios with us, please reach out to Ken Thayer: kthayer@rfmoc.com
