As inflation and interest rates rise, local residential mortgage lenders are seeing signs that the white-hot market of the last two years has started its journey to normalization. But that does not mean the housing market is screeching to a halt, they said, as there is still plenty of demand to work through while supply remains tight in the metro area. … Last Friday’s Labor Department report that inflation in May experienced its largest annual increase since 1981 increased expectations that the Federal Reserve will raise benchmark interest rates by 75 basis points when it meets on Wednesday — and expectations that mortgage rates will continue their march upward closer to 6%. Despite those headwinds, Girrens said there is still a high amount of housing demand locally, as many prospective buyers — already qualified for loans — have not been able to land a new home.
Source: Wichita Business Journal
