For at least the past five years, I have remained convinced that mortgage interest rates would start rising... anytime.  But month after month, year after year, interest rates did not rise... instead, they fell.

But 2022 has been a bit different.

If you had asked me anytime in the past five or ten years what would happen if mortgage interest rates increased from 3% to 5% in the course of just four months, I likely would have told you that the market would likely immediately and significantly slow down... not to a screeching halt... but certainly to a slower pace than before that enormous increase in mortgage interest rates.

But, here we are, on the other side of rapidly increasing mortgage interest rates for the past four months, and the market seems to still be, doing pretty similar things to what it was doing before mortgage interest rates started rapidly climbing.

Homes are still going under contract very quickly.  Buyers are still often competing with multiple offers, including escalation clauses and waiving contingencies.  Prices keep climbing. 

So, have the rising mortgage interest rates had any impact at all on our local housing market? 

I'd say yes.

1.  Some would-be home buyers are no longer able to afford the homes they would like to buy.

2.  I think some homes might be receiving two or three offers now instead of six or eight that they might have received before.

3.  Some would-be sellers might not be selling after all as they see how their buying budget will be affected by higher mortgage interest rates.

So, there have been changes in our local market as a result of these rapidly rising interest rates, they the higher rates have had a much narrower impact than I would have assumed in years gone by.

One other point of trivia... the last time the average mortgage interest rate was 5.25% (or higher) was... way back in August 2009... almost 13 years ago!