Your chances of buying a home in the near future continues to look grim. Mortgage rates continue to skyrocket, putting affordable prices completely out of reach for almost everyone.
Here’s Five Fast Facts on Increasing Mortgage Rates:
- 📈 Going Up? - Mortgage rates have now passed 7%. That’s the highest they’ve been in 21 years. Worse, some experts are saying they may go as high as 8%.
- 🏠 Priced Out - I’ll crunch the numbers for you: if you bought a median-priced home at 7.09%, you’ll pay $2,203 a month in principal and interest. Compare that to Jan. 2021, when median prices were $309,900 at 2.65% for a $999 payment. Yikes.
- 🏡 Doom and Gloom - It’s not just the mortgage rates that are on the way up. Zillow is predicting that home prices will also make a drastic jump, rising 6.5% by July 2024. Since 1975, the average annual increase has been 5.5%.
- 🏚️ No Sale - Those rates are also putting a hard stop on home sales. In June, they were down 19% from last year. No one’s buying because they’re too expensive.
- 📆 Year End Sale? - There is hope, however, with experts expecting those rates to drop by the end of the year when the Fed’s rate hikes expire.
🔥Bottom line: We keep saying it: the pandemic threw all the old rules, trends, and expectations out the window. The market isn’t behaving the way it’s supposed to and that’s confused a lot of people. Will this financial chaos continue? There’s no telling.
How is the housing market in your area?
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