A heavy dose of reality is beginning to settle in for potential borrowers in Grays Harbor looking to time the market at just the right time to ensure substantial savings.

The average 30-year fixed mortgage rate took a huge jump to 3.6% this last week. Not only is this the highest the rate has been since April of 2020, but it is the largest weekly increase over the last 24 months.

The rate increase also marks the third consecutive week that interest rates have trend upwards. Most industry experts agree that a recent surge in inflation plays a considerable role in the rising rates.

More Increases Expected to Follow

This increase is not a total surprise as Federal Reserve Chairman Jerome Powell had previously stated that the Fed expects to raise rates three times in the coming year. As these increases take hold mortgage and other refinancing rates are likely to follow.

Market analysts throughout the country have predicted rates would inch upwards in 2022, but most would have never predicted we would reach 3.6% by the second week of January. Homeowners and buyers in Grays Harbor, like those around the country, should be mindful of these increases as there are, most likely, more increases to come.

Last December the consumer price index published by the Bureau of Labor Statistics made it clear we can continue to expect more rate increases if inflationary trends continue. Seven percent inflation over the last year, the largest Inflationary surge in the last four decades, have, and will continue to impact rates.

“Most reports I have read, “says Grays Harbor’s Oly Pen Real Estate Designated Broker Jason Atwood, “indicate these trends will influence the market in Grays Harbor. We have little control over these factors. What should be important for those of us who are looking to refinance or purchase a new home is to make sure it is the right financial decision for them based upon their unique circumstances.”

If you have been considering purchasing a new home in Grays Harbor or refinancing your current residence, please give us a call. We have a full team of real estate professionals ready to help guide you through the process.

Note: This is a 2-Part series. Next, we will look at these rate increases means for perspective borrowers