There has never been a truer statement about the interest rate forecast for real estate financing than the one offered last year by Mark Fleming, chief economist at First American:

[mpc_alert preset="mpc_preset_21" icon="eti eti_globe_alt" icon_color="#f8bf4d" icon_size="28" icon_background_color="#f3f3f3" icon_border_divider="true" icon_border_css="border-top:0px;border-right:0px;border-bottom:0px;border-left:0px;border-color:#f8bf4d;border-style:solid;border-radius:0px;" icon_padding_divider="true" icon_padding_css="padding-top:25px;padding-right:25px;padding-bottom:25px;padding-left:25px;" font_preset="mpc_preset_13" font_color="#5555" font_size="18" font_transform="uppercase" font_align="left" content_border_divider="true" content_border_css="border-top:0px;border-right:0px;border-bottom:0px;border-left:0px;border-color:#88d282;border-style:solid;border-radius:0px;" content_padding_divider="true" content_padding_css="padding-top:25px;padding-right:25px;padding-bottom:25px;padding-left:25px;" background_color="#f7f7f7" border_divider="true" border_css="border-top:5px;border-right:0px;border-bottom:0px;border-left:0px;border-color:#f8bf4d;border-style:double;border-radius:0px;" padding_divider="true" margin_divider="true" margin_css="margin-bottom:30px;"]"You know, the fallacy of economic forecasting is: Never try to predict real estate interest rates, because you'll always be wrong."[/mpc_alert]

At the beginning of this year, most experts projected that mortgage rates would would gradually increase and would end 2022 in the high three percent range. It's only April, and rates have already exceeded these figures. Freddie Mac announced last week that the 30-year fixed mortgage rate is already at 4.72%.

Danielle Hale, chief economist at realtor.com, tweeted on March 31:

"Continuing along the recent path, the mortgage rates would reach 5% in a matter of weeks. . . ."

Just five days later, on April 5, the Mortgage News Daily quoted a rate of 5.02%.

Nobody knows how quickly mortgage rates will rise in the future. However, at least to this point, they haven't significantly impacted buyer demand. Ali Wolf, chief economist at Zonda, explains:

"Mortgage rates jumped much faster and much higher than the most aggressive forecasts made at the end of last yearAnd yet the demand for housing seems to be holding steady".

Until February, house prices, o number of people asking to see houses and the number of houses that received various offers had a substantial increase. However, much of the increase in mortgage rates occurred in March. We won't know the true impact of the increase in mortgage rates until the March real estate figures are available at the beginning of May.

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Rick Sharga, executive vice president of market intelligence at ATTOM Data, recently put the increase in mortgage rates into context:

"Historically low mortgage rates and higher wages have helped offset rising house prices in recent years, but As house prices continue to rise and interest rates approach five percent on a 30-year fixed rate loan, more consumers will struggle to find a property they can comfortably afford."

Although no one knows exactly where rates are heading, experts believe they will continue to rise in the coming months. Meanwhile, if you want to buy a house, know that rising rates have an impact. As rates rise, it will cost you more when you buy a home. If you're ready to buy, it may make sense to do so sooner rather than later.

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[mpc_alert font_color="#ffffff" background_color="#2eabbf" padding_divider="true" padding_css="padding-left:20px;"]See an article with historical rates:  Mortgage Rates by Decade[/mpc_alert][mpc_icon_column title_font_color="#e4246c" title="Summary" mpc_icon__mpc_tooltip__border_divider="true" mpc_icon__mpc_tooltip__padding_divider="true"]Mark Fleming got it right. Predicting mortgage rates is an impossible task. However, it's probably safe to assume that the days of hitting a 3% mortgage rate are over. The question is whether this will soon also be true for 4% rates.[/mpc_icon_column]

Any doubts?

Now that you know a little more about the behavior of the real estate market and its financing rates, you can consider investing in vacation homes in Orlando. To make the most of all the tips we've given you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

In this article, we've covered the topic of the behavior of the real estate market during recessions because it's interesting for those looking to invest in Florida. If you would like to read more content like the one in this article, just stay tuned to our blog.

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