No-one truly knows what will happen to the economy in the coming months, but what we can say for certain right now is that 10-Year Treasury yields are currently at a multi-year high, around 5%.
This is key for current and prospective home sellers and buyers, as mortgage rates tend to rise and fall in line with yields, and we are already seeing this.
Mortgage rates just surpassed 7% on a 30 year fixed loan. The big unknown is whether 7.5% to 8%+ is coming and it's just been announced that the Federal Reserve is raising general interest rates for the first time since 2023. It's safe to say, it'll get worse, before it gets better. With all the current economic turmoil, there is NO quick fix or solution in sight.
Now could prove to be a better time to sell than later, not least because significant further mortgage interest rate rises will inevitably see home price erosion, with lower returns for sellers moving forward.
If you're planning to list in the coming months, it is worth considering moving those plans forward. Fall is a great time to sell, with highly motivated buyers and less competition for them.
Feel free to call us for an informal discussion at 435-327-2090.
