Mortgage rates hit 20-year high
MOUNTAIN BROOK, Ala. (WBRC) -The rate for a 30-year mortgage hit 7.08 percent, the first time it has topped the seven percent mark in two decades.
For comparison, it was just over three percent a year ago.
Analysts said mortgage rates have ticked up nearly every week since late August and have more than doubled since the start of the year. They said the Fed’s decision to hike interest rates to tame soaring inflation is fueling the rapid climb.
Marshall Clay with The Welch Group said the high borrowing rates are coming at a time when home costs are also high, so many would-be homebuyers are stepping away from the market.
Clay said if you need to buy a home now, there are a few things you may want to consider.
“If you’re confident that you can purchase the home and stay there, stay in that home for at least three years, probably like five to ten years, I think you’ll be okay,” he said. “But if you’re looking to maybe purchase a home and maybe you think there’s a high likelihood you’ll have to sell it in two to three years, I would be very apprehensive about doing that unless you absolutely need a home for a specific purpose.”
Clay also said to consider the stability of your job right now.
He said if you’re not relatively certain about the future of your work situation, or if you’re planning to change jobs soon, now might not be the best time to buy a home.
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