Interest Rates

Home mortgage interest rates have been trending upward in recent months, with the average 30-year fixed rate reaching 7% as of November 2024. This represents a significant increase from historical lows seen during the pandemic era. Several factors have contributed to the rise in rates, including expectations of future Federal Reserve policy changes, concerns about inflation, and shifts in investor sentiment towards bonds. The higher rates have impacted housing market dynamics, with purchase demand declining as borrowing costs have increased. However, rates remain relatively low historically, and many experts anticipate they may stabilize or even dip slightly in the coming months as the economy adjusts to changing monetary policy conditions.