Mortgage rates home prices still on the rise

Mortgage rates home prices still on the rise

The housing market where mortgage rates and home prices are still on the rise.
The harsh reality is right now buying a home is nearly 20% more expensive than it was just
last year.

Mortgage rate rise Who will feel the most pain
And ABC’s Alexis Christophorus joins me now for a real estate reality check to break down
all the latest on the home front.
Alexis, we’re going to start with mortgage rates.
They’re high, so are home prices.
What’s happening?
Yeah, well, it’s been a really tough year for home buyers.
Mortgage rates have more than doubled since the start of last year.
The average rate on a 30-year fixed mortgage now just a hair below 7%.
And that’s pushed the typical monthly mortgage payment just above $2,600.
That’s up 19% from a year ago.
Now, at the same time, home prices continue to rise.
They’re up more than 3% in the past year, topping $380,000.
The problem here, demand continues to outstrip supply as more homeowners hang on to their
lower mortgage rates.
Just over a million homes were for sale in June nationwide.
That’s down about 14% from a year ago.
And of course, that’s leading to some fierce bidding wars across the country.
You’ve got buyers offering nonrefundable deposits.
They’re waiving inspections and appraisals.
More than a third of homebuyers now paying in cash.
So it’s really hard to compete.
And that’s a tough squeeze with the price is high, inventory low.
Exactly.
How many people can afford to buy a house right now?
It is undoubtedly still a seller’s market, right?
So especially for first-time homebuyers, because that could be especially challenging.
You now need to earn close to $64,500 a year to afford a starter home.
The typical starter home in June selling for a record $243,000.
Well, that is up 45% from just before the pandemic.
Oh, man.
And is there any kind of relief in sight?
We do have a little good news for you.
So the experts that we’re talking to say rates are not expected to rise much further
from here.
Economists we spoke with believe that mortgage rates have stabilized, but we still have this
combination of low unemployment, higher wages, and a resilient economy.
That combination is expected to keep home demand high and those mortgage rates elevated.
So it’s bad, but it might not get worse.
That’s a good way to categorize it.
Yeah.
OK.
Well, this is a reality check, and that is the current reality.
It is.
And you are on top of it.
Alexis, thank you so much.
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Robin Roberts here.
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