A Look at Current Maryland Mortgage Rates

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Like many states across the country, mortgage rates are on the rise in Maryland once again. However, the higher mortgage rates have not yet corresponded with a less competitive, more-affordable market yet. The opposite is in fact true. Competition in the market is still present across the state. Let’s take a look at the current mortgage rates in Maryland and the state of the housing market in general. 

An Overview of the Current Rates in Maryland

As it stands today, at the outset of November, the current 30-year fixed rate mortgage is going for an interest rate of 3.125%. That’s up from 3.07% for the month of October. Maryland is following a trend that’s being observed across the country: rates are going back up. The pandemic and the uncertainty it created plateaued rates to historic lows, falling all the way down to 2.69% in December of 2020. While the rate is climbing back up, it still remains lower than pre-pandemic numbers, where in February 2020 the rate was hovering around 3.47%. What this shows is that slowly but surely, mortgage rates are regressing back to the mean over pandemic levels. 

The Housing Market Remains Competitive

While current mortgage rates in Maryland are stabilizing, they have had little effect thus far on the current housing market. Competition remains supreme in areas across the state. Buyers are going to drastic lengths to acquire homes, including paying transfer fees, over-appraisal, not requiring any fixes after inspection, and of course, bidding well above the asking price. Right now, it is a seller’s market.  The rate of overbidding varies by area. For instance, in Frederick, Maryland’s hottest housing market, 61% of homes are being sold over asking price

What’s Causing The Competitive Market?

There are several factors still at play that are driving the competitive market. The pandemic led to lower mortgage rates, which drove an uptick in home buying as consumers desperately tried to take advantage of great rates. However, that home buying craze still hasn’t come down to earth. The single greatest factor is likely a low housing stock, as builders struggle to keep up with demand for housing. This low inventory is leading to buyers having to fight for the same homes in certain areas.

What’s The Outlook?

While the market remains hot, there is some indication that things may start to normalize soon. Data compiled by Bright MLS showed that interest in home buying dropped by about 6% over the period of a month across the Baltimore metro area.. While that’s not huge, it could foreshadow a slow cooling of what remains a very hot market. While home sales tend to slow down in winter, it appears that the slowdown is less pronounced than in the pre-pandemic era. 

What Steps Can You Take to Prepare Yourself?

Don’t be discouraged by the competitive market, as the best way you can prepare yourself to be the most qualified buyer possible is by working with an expert mortgage team. At Federal Hill Mortgage, we help you secure pre-approval, so you can be an attractive shopper to prospective sellers. If you want your best chance of scoring the home of your dreams, apply today.

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Federal Hill Mortgage

Federal Hill Mortgage

The Federal Hill Mortgage Team is here to supply you with all the information you need to shop for a mortgage that's right for you.