As previously forecast interest and mortgage rates have skyrocketed. The most recent Federal Reserve rate hike has driven mortgage rates into the high 6%’s, rates not seen for two decades. With the 10 yr. Treasury now approaching 4% I believe we are nearing the tipping point for the Fed’s. We can only hope the economic data soon reflects a slowing economy and the Fed’s back-off. Real estate nationally is grinding to a halt; fortunately our market is very resilient.

Recession seems a forgone conclusion at this point but I don’t predict a 2008 recession, not even close. With low unemployment and corporate profits at their current levels it may be one of the mildest recessions ever, and it should push mortgage rates back down to the low 5%’s by the end of 2023. If you’re forced to get a new mortgage in the current environment, fear not, I believe you’ll find savings in a refinance next year. Current conditions have brought back some old mortgage products; once again we have permanent and temporary buy-downs to help ease the pain of current rates.

For tailored advice and the latest insights specific to your needs, don’t hesitate to contact Summit Mortgage. Summit can help you navigate your mortgage options and find the best fit for your financial future.