How Rising Interest Rates Will Impact the Hoboken Real Estate Market

Hoboken Real Estate Podcast with Brian Riolo

Over the last few weeks, we’ve seen a steady increase in interest rates. It’s been one of the key notes that keeps coming up with clients at open houses, listing appointments, or showings, so I wanted to talk about it a little bit today. For the first time since last summer, the average interest rate for a 30-year mortgage is above 4%. One of Freddie Mac’s chief economists, Leonard Kiefer, says that he believes we have seen the end of sub-4% interest rates. “Rising interest rates might reduce inventory further.” Mortgage applications have increased by 4.1%, although a key aspect of that is people refinancing their homes. We are also seeing 10% fewer homes on the market nationally. Here in Hoboken, we’ve seen a 3.92% decrease in active inventory compared to this time last year according to the Hudson County MLS. Rising interest rates might reduce inventory further, as sellers will lose some incentive to sell their home and purchase a new one. With that said, there are still a bunch of great homes hitting the market, and we still have less than a three-month supply of inventory, which is great for sellers. If you have any other questions about rising interest rates or buying or selling a home, just give us a call or send us an email. We would be happy to help you!