Mortgage rates will be surging after the jobs report today, and you might wonder about the impact.
The Fed doesn’t meet again until the last week of July, and, by then, it will be certain that they will bump another quarter or half-percent. It probably means that we will have mortgage rates well into the 7s for the rest of the year.
What is coming is The Big Stallout. It will just be too easy for buyers AND sellers to wait until next year.
Is there really that much difference between a rate of 6.75% and 7.25%? Well, yeah kind of. On a $1,500,000 mortgage, the difference is $504 per month.
But it has more to do with the calendar. Buyers have been searching for 1-3 months now, and at this stage, they are looking for any reason NOT to buy and wait instead. Most of the deliberate sellers who planned their 2023 move with precision have put their home on the open market by July, so the inventory over the last 4-5 months of 2023 will probably cause be VERY lean – which buyers to disengage.
Home sellers and listing agents will have to do it better than ever to find success!