Last week’s rates were the highest we’ve seen in a year’s time. Since then, rates have come down quite a bit with the 30-year fixed rate mortgage 21 basis points lower at 6.07% and the 15-year mortgage just 1 basis point lower at 5.44%.
Following last week’s grim Consumer Price Index, which revealed prices were rising at an annual rate of 8.6%, interest rates skyrocketed. However, this is not all bad news. For one thing, bonds and rates have recovered since then; after Fed Chair Powell stated that they would be implementing a 0.75% rate hike, but that such hikes would not be the norm, the market made a considerable comeback. For another, this is the rate ceiling that analysts have been waiting for. Now that the Federal Funds rate hike has been sufficiently priced in, we can better ascertain the next long-term ceiling. On the real estate side, remodeling demand has diminished due to rising costs and no further prospect for stimulus money. Spending is expected to reach $430 billion by Q2, exceeding 20% from the same time last year, before peaking in Q3.