Seller Alert: Mortgage Rates are SPIKING

One of the early economic stimuli to result from the COVID pandemic was a sharp drop in mortgage lending rates.  This resulted in many more people suddenly able to afford a home (or in a better position to refinance what they already had.)  In fact, we saw such an increase in buyers that we have been in constant state of low inventory ever since, and prices have climbed substantially in nearly every market- and Kitsap County has been no exception.

This had predictable effects on our clientele:  sellers began to wonder if they should wait longer to sell (and thus get a higher price.)  This had the effect of even FEWER homes on the market.  Potential sellers also had to worry about whether or not they would be able to find or afford a new home after they sold - and so often chose to hold onto properties instead, preferring a "sure thing."  Meanwhile, buyers found themselves bidding against an ever increasing tide of competitors, and probably looking at homes smaller and less grand than their dollars bought a year or two earlier.  It's been a nail biting couple of years for everyone, for sure

This week, we are seeing reports of the mortgage rates starting to climb - which nearly everyone expected was around the corner.  However, CNBC reports yesterday that they are surging faster than expected:

• The average rate on the popular 30-year fixed mortgage hit 4.72% on Tuesday, moving 26 basis points higher since just Friday, according to Mortgage News Daily.

• As a result of the recent spike in rates, economists are now lowering their home sales forecasts for this year.

• Most estimates at the end of last year had the average 30-year mortgage rate hitting 4.5% by the end of 2022, but the war in Ukraine, rising oil prices and inflation have all lit a fire under interest rates.