The Most Common Question We Currently Get

The most common question we currently get when talking with clients is about interest rates on mortgages. How high are they now? Will they go down anytime soon? How are they impacting the housing market?

Currently mortgage rates are in the high 6%’s. Generally ranging from 6.875% to 7%. That is if you are buying a primary residence. They are about 1% higher if buying for investment.

Will they go down anytime soon? Well, that depends. If inflation goes up then interest rates are likely to remain where they are and interest rates could go higher depending on how high inflation is. If inflation goes down then interest rates will likely go down.

How are the current interest rates impacting the housing market? In Chicagoland, the housing market is strong. This is because of very low inventory. There is more demand than there is supply so interest rates are not high enough to really have a negative impact on the housing market here. In other parts of the country, the number of homes for sale is increasing year over year so the higher interest rates in those markets are negatively impacting the housing market.