CHARLOTTE – Good News, rates are going down! Yes, you read that right. Mortgage interest rates have been declining at a very good pace since the middle of 2022 when they peak in the 7%’s. Now one may think, but the fed continues to raise rates? That is true, and that is also why rates are going down. It sounds the opposite, but the main driving force behind interest rates currently are the inflation numbers. When inflation is rising at a rapid pace, it tells lenders that money is not going to be worth as much in the future; therefore, they need to collect more of it, in the future, to be equal to the value of the dollar today (hint: higher rates/higher interest). But as inflation peaks and begins to lessen, the lenders use the same method that the value of the dollar is “increasing,” meaning they can lower interest rates, and collect less interest.
With that being said, it appears inflation numbers (just like interest rates) are dropping, and many projections show that in 2023 they will continue to decline. This is VERY good news for anyone that has bought a home in 2022, as they can refinance, and even better news for potential buyers in 2023 and beyond.
As always, if you are to have any questions, please do not hesitate to call, text or email (email@example.com / (704) 430-6138) as we are always happy to help!