After the Housing Crash and the Great Recession ended more than a decade ago, the U.S. experienced an extended period of low rates and cheap borrowing. The Pandemic Housing Boom of 2020 - 2021 built on that already impressive momentum. Sooner or later, the pendulum was bound to swing.

It turns out that the ebb in this cycle is 2022.

To fight back against persistent inflation, the Federal Reserve has so far made four aggressive hikes this year to its “Fed Funds Rate,” including a second 75-basis point increase July 27. All indications point to a similar hike in September.

The Fed rate is a baseline rate banks charge to lend to each other. All borrowing rates, including mortgage rates, tend to follow it over time. This time, it happened quickly.

After the hikes, yields on U.S. Treasury bonds – which most directly affect mortgage rates -jumped to 10-year-highs. Accordingly, 30-year fixed mortgage rates rose to their highest levels since 2008.

The biggest difference between then and now? Today's higher mortgage rates come amid a booming economy and record low unemployment.

Even in times of economic uncertainty, homeownership is a vital for building wealth and community with deep implications for the future of the American Dream.

Rates go up and rates go down. Good companies and good Loan Originators help their borrowers regardless of the variables.

At Bay Equity Home Loans, we have some of the best mortgage operators in the business. The company was built on a set of Core Values. Today, these fundamentals are more important than ever.

Bay Equity is dedicated to exceptional customer service and innovative programs. Its employees are committed to making a positive impact on the communities they serve.

For those buyers still in the housing market, there should be a lot more homes to choose from as supply and demand come into better balance. Bidding wars and contingency waivers so prevalent during the coronavirus housing boom should taper off.

While rates may have come off historic lows, waiting for them to improve is a risky game. Buyers who wait for the perfect time might miss out on the perfect home.

While somewhat unpredictable, mortgage rates are often cyclical. At some point in the future, they are bound to drop again, and you can refinance. One thing is for sure: The sooner you buy, the sooner you start building equity to help realize your family’s dreams.

At Bay Equity, our mortgage professionals offer a full array of loans to fit your specific needs. We work tirelessly to match you with the right product for your situation.

Bay Equity is keeping the Dream alive for those with more moderate incomes, too. We offer many loans with down payments as low as zero to 3.5%, including VA, FHA and USDA. We can help access many private and local down payment assistance (DPA) programs, too.

Bay Equity also offers “Giving to Heroes,” an exclusive credit-back loan program for active or retired military members and other service professionals.

From application to close, Bay Equity originators go out of their way to make sure you are informed, updated, and most of all, satisfied.

Reach out by email or give us a call today. We're here to get you home.