Mortgage interest rates are nearly at the highest level in 15 years, according to weekly lender surveys by Freddie Mac. As of July 14, 2023, the average interest rate for a 30-year, fixed-rate Conventional mortgage stood at 6.96%. The highest average in recent years was reached in November 2022, when rates briefly nudged past 7%.
While higher rates make mortgages more expensive, the most expensive part of home buying is the home itself! According to data from the Wisconsin REALTORS® Association, the median price of a Wisconsin home has increased every year since 2011.
For example, the median WI home sale price in 2011 was $131,737. By 2022, the median WI home sale price was $264,500. This is a whopping 100% price increase in the span of 11 years – a quick price progression by historical norms.
When you look at the growth of home prices, waiting for lower interest rates means risking higher home prices as time goes by. In Barron County, home prices increased 15% on a year-over-year basis as of May 2023. Meanwhile, mortgage interest rates increased from an average of 5.45% in May 2022 to 6.58% in May 2023.
We can expect Northwestern Wisconsin home prices to keep climbing, as long as buyer demand outpaces the supply of homes for sale. Mortgage interest rates may tick higher as well, though economists expect rates to level off as inflation cools. In other words, trying to time the market isn’t likely to save money. Your best bet is to be well-prepared for the market and be ready to pounce on a good opportunity.
Ready to buy a home in beautiful Northwestern Wisconsin? Call us for expert guidance! Six Lakes Realty is a locally-owned family business with over 45 years of experience. Contact us today for friendly, hometown service!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com