Long-term mortgage interest rates 7% or morefor the first time since 2002.
The pandemic has pushed mortgage rates to record lows in 2020 and 2021, with 30-year mortgage rates a year ago at 3.09%.
The national numbers are in line with what Indiana realtors are seeing, which is influencing home sales rates.
Sean Fay is the president-elect of the Southern Indiana Association of Realtors. He said rising mortgage rates will affect people’s purchasing power and ability to spend. If you buy now, Faye recommends staying home for at least her five years.
“Don’t worry, 7% isn’t terrible,” Faye said. Still, you may be able to refinance and pay it off or pay it off early. ”
In 1981, the interest rate on a 30-year mortgage was 16.6%.
Chris Watts of the Indiana Real Estate Association said interest rates were rising amid general economic uncertainty. But other conditions also affect the market.
“Indiana was among the top 20 states in terms of population growth last year,” Watts said.
Watts said locations with strong job markets and other factors that affect the economy will ultimately affect home sales.
The National Association of Realtors reported that September was the fourth month in a row before home sales fell. September rate Midwest pending home sales were 80.7, up from 94.5 in March..