There has been a dramatic transformation in the housing market over the last few years, particularly regarding mortgage rates. In 2020 and 2021, prospective homebuyers enjoyed historically low interest rates, with rates on mortgage loans hovering around 3%. This favorable environment made homeownership more accessible and affordable for many Americans.
However, as inflation ticked up, the landscape changed rapidly. With the Federal Reserve implementing aggressive measures to combat inflation, rates across all borrowing types increased quickly. In turn, mortgage rates soared, even surpassing 8% in late 2023, which significantly increased the cost of homeownership.
Does an ARM loan make sense with mortgage rates cooling?
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