I’ve been a licensed broker and investor in the Greater Boston area since 2015. I bought my first home at the age of 24 and went on to build an 8-million dollar real estate portfolio at the time this video is made. I am passionate about using my experience to help my buyers and sellers get the best value.

Today, I’m going to talk about a topic that some people might be concerned about: the rising mortgage interest rates.

Mortgage interest rates have increased by about 2% since the start of 2022, jumping from around 3.5% to 5.5%. The feds did this to tame the economy's rapidly rising inflation rate. How does this impact the housing market? The market has cooled down in the past 2 months with some areas turning into a seller’s market. However, some hot areas and price points are still seeing multiple offers frequently. 

Personally, as an investor of 7 years, I think this is good news for buyers. For the first time in many years, we are seeing lower buyer competition in the greater Boston area. Long-term, I don’t see major concerns about the value we are getting in this area, and here’s why.

Mortgage rates have historically fluctuated over time, with rates being the lowest since 2010. We saw double digit interest rates in the 70s and 80s. This puts things into perspective because it shows that rates now, while being the highest since 2018, are still low when we look at a 30-year horizon. In the meantime, housing prices in the Greater Boston area have consistently increased overall due to inflation, high demand, population growth, and growing wages.

At the time this article was written, July 2022, most of my first-time buyer clients got rates in the low 4s after shopping from several of my recommended lenders.

These are very similar rates to the rates I got among some of my own personal purchases between 2015 and 2018, mostly ranging from 3.75-4.6%. I’m happy to share contacts of the lenders my clients worked with who offered these lower rates. 

To learn more about my investment stories, feel free to check out my home buyer seminar where I shared my investing experience since 2015, including how I came to build a 8-million portfolio and the numbers.