Mortgage rates are up for the fifth straight week. On average, more than half of local home sales for the entire year occur between March and July. With what’s left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon.

interest rates are being driven by strong consumer spending for services, which is creating a negative feedback loop and keeping mortgage rates higher. That’s expected to continue since consumers have cut savings to keep up with their spending.

There’s a chance the FED will cut rates in July, but only if there’s a drop in inflation.

Housing, car repairs, and insurance are the current big inflation drivers. Local rents are beginning to show signs of cooling as has the price growth rate for homes. That aligns with national condition, but it’s not clear if that will exert short-term downward to curb inflation and allow a FED rate cut.

The best odds of that now look to be in November, according to current outlooks.

Categories: REAL ESTATE