Mortgage rates are on the rise at a record pace. And, every time you cut on the Tube you're reminded of rising interest rates. You may be asking - will rising mortgage rates cause the market to crash or you may be wondering - are current mortgage rates really that bad? If so, then this video is for you!
To combat rising inflation, the Fed is raising interest rates, which caused mortgage rates to shoot up to 5%, the highest level for mortgage interest rates in nearly a decade.
Tune in to The Dave Wallace Show as Dave, a licensed realtor in South Carolina, comments on what's happening right now in the real estate market around interest rate hikes and what you can expect moving forward.
Watch the full episode:
Pro Tip: There's a lot of fear in the markets and fear breeds bad financial decisions. Don't panic! Historically speaking, 5% is not a bad interest rate. Only after rates have been at all-time lows (under 3%) do 5% interest rates look so bad. That's not the end of the story as the Fed plans more interest rate hikes, but at the same time, we're not yet in the territory of bad interest rates historically speaking. Back in the early 2000s mortgage rates were hovering around 7%. The important thing is not to panic and to focus on what you can control, that is improving your financial position and buying only what you can afford.
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