The average U.S. fixed interest rate for a 30-year mortgage rose above 6% this week. It’s more than double the 2.98% borrowers were offered during the same time period in 2021. Spurred on by the Federal Reserve‘s interest rate hike, mortgage rates are likely to continue rising throughout 2022.

It’s a good news, bad news situation for the real estate market.

The uptick is already impacting real estate investment. According to Redfin, soaring borrowing costs and home prices prompted real estate investors to slow their roll in the first quarter of 2022.

“Investor home purchases are falling for the same reason overall home purchases are falling: Surging interest rates and high housing prices have made it more expensive to get a mortgage and buy a home,” Sheharyar Bokhari,  Redfin Senior Economist, said in a statement.

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