Explaining Rising Interest Rates and Real Estate to Clients...
Updated October 29, 2022
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In a dynamic free market, lenders—whether government-backed or privatized—compete for home buyers' business, which drives up or down average monthly interest rates on mortgage loans.
Based on corrected housing prices, tighter credit standards, and a declining surplus of unsold homes, the average interest rate on 30-year fixed mortgages has remained near historic lows from 2013 to 2021 but has started to rise in 2022, though are still at historically low levels.1