More Bad News For Mortgage Rates

Mortgage and Lending with Watermark Capital NMLS #311662

How high can you go?

The average US mortgage rate has surged to 7.1% — a level it has not reached for over two decades, according to data published by Freddie Mac last week — as sustained interest rate rises from the Federal Reserve continue to filter through into the mortgage market.


The reverberations of these high mortgage payments, coupled with the sizable contingent of present homeowners who secured mortgages during the era of ultra-low interest rates, have cast a shadow over the housing market. Understandably, everyone already holding favorable fixed rates are reluctant to re-enter the mortgage market, leaving aspiring buyers with limited options. The consequence? A nearly 19% plunge in year-over-year sales of existing homes in June, converging to make the most challenging housing affordability conditions in the last four decades

Posted by

Matt Brady

Branch Manager, NMLS ID#311662

(858)342-8659 cell |  
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     


BIA SanDiego 19 year Member and P2 Sponsor


BIA SMCBoard Member since 2012





Comments (4)

Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

How low or how high? It can go to 9 or as Fortune article states:

''Fannie Mae: Economists at Fannie Mae forecast that the 30-year fixed mortgage rate will average 6.6% in Q4 2023. Then Fannie Mae expects mortgage rates to grind down to an average of 5.9% in Q4 2024. For the calendar year, Fannie Mae expects mortgage rates to average 6.1% in 2024.'' 

Aug 21, 2023 01:40 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA

I sure understand what you are saying.  We have one of those low rate loans.  There is absolutely no chance we will sell and we would like to move to a house that better suits our needs.  It just can't happen with rates up and prices still up. 

Aug 21, 2023 02:39 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Matt, rates are crazy right now, and my lender sees no let-up in the near future.

Aug 21, 2023 05:44 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

In all fairness it is more bad news for potential buyers  just my two cents, Endre

Aug 21, 2023 10:32 PM