Mortgage Rates Go Over 5%
With the 28 basis point jump of 30-year, fixed-rate mortgage to 5% for the week ending April 14, it nearly doubled the rate of 2.65% from January 2021. This increase is after the first of 6 interest rate increases that are planned by the Federal Reserve to try to control inflation. Some lenders have started to down-value properties and more mortgage applications are being declined. With inflation at a 40 year high and mortgage rates at a 10 year high a cooling off of real estate markets may be ahead. Recessions historically follow inflation. It is still in fresh in mind that the real estate highs of 2006 were followed by a crash and recession in 2008.
--- Robert W. Neill, Jr. is a sixth-generation farm and land owner and a licensed real estate broker who represents buyers of farm, land and real estate properties and is an investor in small businesses and startup companies. He can be contacted through his web site at landhungry.com
