It seems as if the times of low-interest rates are slowly fading away.
According to NerdWallet, a 30-year mortgage has hit rates of 5.198%, which happens to be the highest we've seen interest rates since 2011.
As some may know, when the Federal Reserve increases its interest rates, it decreases the amount of money banks can borrow. When banks do not have as much money to work with, borrowing money becomes more expensive. Which in turn, causes mortgage rates to increase.
According to money.com, the total number of mortgage applications are slowly decreasing. They decreased by 1.3% last week ending with April 8th. Redfin, an online brokerage, reported fewer searches for homes, and Mortgage Bankers Association reported a second week in a row of double-digit declines in purchase applications.
So why are home prices still going up? There still seems to be a high demand for homes and it's very competitive as prices are still rising. Time will tell what will happen moving forward. Economists will tell us that as mortgage rates rise, demand will slowly start to slow down which in turn will cause price raises to slow down.
Will this happen? It's almost impossible to say at this point, it could potentially come down to what happens with supply (supply being listings). Although there is an indication of prices going down, if there is no supply then things could stay the same or prices could continue to rise.
I prefer to stick to the strategy that you cannot time the market. If you're wanting to buy, continue to buy, if you're wanting to sell continue to sell. The market will do what it does and it is near impossible to guess what will happen next.
If you are just starting your journey with buying or selling in Iowa, I would love to help. If you are not in my area, I have built connections with quality, experienced Realtors all over the country and would love to help find you a rockstar Realtor.