Omo, this week e don carry another wahala as mortgage rate don rise again! As we dey talk now, the average 30-year fixed rate mortgage (FRM) don waka go 6.09%, and 15-year FRM don follow with 5.44%. Wetin dey happen sef?
You sabi say dis na serious matter for people wey wan buy house? The rate don dey touch ground since last year, but now e don take sharp turn again. Na so the market dey graga, as many people dey look like say dem go just hold body and watch wetin go happen. E get why dem dey do am o!
According to the experts, e no go too easy to expect rates to fall sharply. Dem talk say Federal Reserve go follow market trend wey no go let dem do any serious rate cut for this year. As inflation dey vex for corner, na im dey push this mortgage wahala. So wetin we go do? Biko, we go just dey manage our expectations!
The rates don enter plenty people’s mind, especially first-time buyers. Dem dey fear to jump go buy house with this climbing rates, because e no go sweet for pocket. Dem don see how high prices don make them dey slack as dem to dey reason their finances well-well before dem dey dive for mortgage loans.
As this year don start and buy market still dey weak, na so dem dey talk say we fit see more price drop for houses. Sellers dey get pressured to cut price, as dem wan sell fast-fast. E fit make sense for buyers to chill small, because this may just be the time when better deals go dey come!
A follow-up be say government interference fit still dey play game for this matter. If dem no do something to adjust the market, we fit dey face extended period of pressure for homeowners and dem buyers wey dey wait on the side.
But make I clear you, the longer term na say mortgage rates fit still dey trend up small-small compared to where e dey come from. Na since 2013 we don dey see this pattern. E gon long, maybe for another 20 years more!
So as we dey carry our drinks for this corner, make everybody dey shine eye. The economy get plenty wahala and e dey affect us all, but patience and strategy fit help us ride this wave go better shore. Na we go wait and see wetin the coming months go bring for this mortgage rates. Naim be the real deal!
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