Existing Home Sales Drop 7% As Mortgage Rates Rise

Here it comes…rates rise a bit and home sales drop a bit. Those who could maybe afford a home at 3% mortgage rates are now getting priced out of the market as rates rise to 4% and above.

Don’t fear. Historically, these rates are still extraordinarily low. Think about what the average mortgage rate was in the following years:

1970 - 8.5%

1980 - 17%

1990 - 10.31%

2000 - 8.25%

2010 - 4.98%

2015 - 3.66%

So being at 4% in 2022 isn’t that bad. But do you see a potential trend? If you haven’t refinanced, or are still thinking about buying, the rates are not likely to get lower. So get out there and pull the trigger!