Mortgage rates climbing rapidly

The average 30 year fixed rate mortgage is now 6.625% for conforming loan amounts (up to 417K) which is at its highest level in over 10 months. These rates have shot up sharply over the last 2 weeks as the 10 yr bond has dropped during this period. This climb is not expected to turn around any time soon.

Unfortunately, this will not be good news for those waiting for home value declines to level off. Some experts are expecting rates to reach 7% before the years end. We have seen these predictions before any many of them are as accurate as weather predictions. However, there are also predictions that the Fed will lower rates early next year. Hang on to your crystal ball because your guess is as good as anybodies.

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