Dan Hubrich of Mountain View Mortgage is back and this month he’s explaining rising interest rates and how they will affect home buyers.

What’s happening with interest rates? In short, they are going up. The Fed announced 3 rate hikes for 2022 and 3 more for 2023. The reasons behind this are mainly inflation concerns and a booming workforce. The silver lining is that rates are still incredibly low, historically speaking. The other silver lining is that Wallstreet has for the most part already “baked this news into the cake”. We saw a sharp increase in rates over the past couple of weeks on this news but what usually happens is when the Fed ACTUALLY raises rates in the coming months, mortgage rates probably won’t go up at all unless there are additional surprises from the Fed. So don’t stress, rates are still excellent and it’s still a great time to buy with Utah’s booming economy and real estate market. However it is good to know that long term we are in an inflationary rate environment unless some major fundamentals change. With that in mind, you will probably get more of a bang for your buck sooner than later with rates and real estate prices. Give us a call if you’d like more information on how this affects you personally.