Hello everybody! Welcome back to Suburban Snacks, where we not only inform you of current Real Estate topics but also review a different food item every month! This month’s snack is… sour punch bites! Before we review the snack, we’ll be informing you on whether or not the Fed’s rate hike increases are influencing the buyer market! Last week, the 30-year fixed-rate mortgage averaged 5.23%, according to Freddie Mac. A year ago, rates averaged 2.96%. By some measures, mortgage rates were just shy of 6%—at 5.99%—two weeks ago, according to Bankrate.com’s national survey. Greg Schwartz, CEO, and founder of mortgage lender Tomo said, “Consumers haven’t seen mortgage rates above 6% since 2008. The pace of this move is what’s most concerning, as consumers’ buying power evaporated quicker than any time in recent memory. Further, volatility in rates may not decrease anytime soon either.” To give these rates some perspective, here’s an example. Affording a $316,000 home with a mortgage rate of 6% is about equal to paying for a $450,000 home with a 3% rate. This means that more aspiring home buyers are getting priced out. In response, mortgage applications, a gauge of homebuying demand, have been falling by double-digits. Ruben Gonzalez, chief economist for Keller Williams says, “Mortgage rates going forward will continue to be responsive to changes in expectations around the Fed’s policy path as well as inflation expectations. The housing market is still extremely tight, with inventory levels remaining near historic lows, leaving room for the market to absorb falling demand.” The Fed committee still appears optimistic about the economy and is forecasting inflation to move significantly lower in 2023. If you are a buyer who is interested in purchasing a home then we at Suburban would love to help! Do you like sour punch bites? Let us know in the comments below. That’s going to do it for us here at Suburban Snacks. If you have any questions or want to contact us, feel free to check out our website at suburbanrealestategroup.com. Also, make sure to click the link below to follow us on Instagram. Thanks for watching, my name is Cade Olof and we will see you in the next one!