May 2026 – What the heck is going on?
Today, interest rates rose again to just under 7% amid the US 10-year Treasury’s jump Friday to the highest in a year. For comparison, we just closed on a sale last week at a 5.99% fixed rate.
The highs and lows for this benchmark (US Treasury) over the last 10 years were 1.13 in August of 2021 and 5.02 in October of 2023. The last 2 days we’ve ranged 4.56 to 4.65 so far. In March, that figure was as low as 3.99.
*Note, this is not the same as a “T-Bill,” which is a shorter-term bond. Mortgage rates are typically a few % above the 10-year US Treasury because historically, a 30-year loan is paid off in an average of 10 years due to home sales and refinancing.
Many believed the new Fed Chair would lower rates, the national debt, and the US Economy, and Moody’s lowering the US creditworthiness for the first time since it was established in 1917 may not allow that to happen.
https://ratings.moodys.com/ratings-news/443154
The firm matched other global rating agencies that downgraded US creditworthiness in 2011 and 2023. The firm said it expects federal debt to increase to around 134% of gross domestic product (GDP) by 2035, up from 98% last year.
https://www.bbc.com/news/articles/c4ge0xk4ld1o
This graph from the Federal Reserve Bank shows mortgage rates from 2021 to May 14, 2026.
The next time this chart will change is May 21st, and you can expect the blue line to move up to the next black line.
What Does this Mean to YOU?
- The Value of your Home or Investment is based on what a Buyer is willing to pay.
- When interest rates rise, Buyers can’t afford to pay as much.
- Buyers choose from available inventory, and inventory is rising while both prices and numbers of sales are down from normal. Cherokee County’s values dropped 4 months in a row, and there are record numbers of price reductions across nearly all price ranges. SEE PHOTO *
- There ARE things you can do as a Buyer and as a Seller. Read ON.
Buyers
- Look for Sellers who are priced below tax-assessed values.
- Look for Sellers that have reduced their prices after more than 30 days on the market.
- Look for Sellers willing to buy down your interest rate and/or pay some closing or other credits.
- Know YOU will own this home down the road, so look forward to what you think the values will be in the future.
Sellers
- Be the best price in your range. Ideally, also have the best features a& condition, so YOURS is the next sale that happens in your price range.
- Be ready to show at all times. Vacuum yourself out of your house each day (the way you live in a house and the way you sell one are wildly different things.)
- Don’t hide issues, but highlight them and offer credits to fix them.
- Offer incentives to Buyers. A rate buy-down is a HUGE incentive in this market.
