Housing market chills as mortgage rates, prices scare buyers

Kyle Tomcak sits in front of his house in Aurora, Colo., on Monday, July 18, 2022. Tomcak was in the market for a home priced around $450,000 for his in-laws and he and his wife bid on every house they toured, regardless of whether they fell in love with the home. He said his search became increasingly dispiriting as he not only lost out to investors fronting cash offers $100,000 over asking price but as mortgage rates started to balloon. He has since pulled out of the housing search.

, according to mortgage buyer Freddie Mac; a year ago it was close to 2.78%. The increase in rates is leaving buyers with some unwelcome options: pay hundreds of dollars more for a mortgage, buy a smaller home or choose to live in a less desirable neighborhood, or drop out of the market, at least until rates come down.

In Seattle, a hotter housing market, a $2,000-a-month payment this time last year would have gotten a buyer a modest 1,300-square-foot home. That sort of payment would get them only a 950-square-foot apartment now. For more than a decade, potential homebuyers were willing to put up with rising home prices because the cost of a mortgage was at historical lows. The average mortgage rate on a 30-year fixed-rate mortgage mostly stayed below 4.5% for most of the last decade, according to data from the Federal Reserve Bank of St. Louis.The financial data firm Black Knight estimates that the rise in mortgage rates has increased a typical borrower’s monthly payment by 44% since the beginning of the year.

Instead, the Martins have yet to receive a single offer and have lowered their asking price to $899,000. Raymond Martin, 51, noted that shortly before listing his Austin home, a neighbor sold their similar-sized home for $100,000 over the $1 million asking price.

All signals point toward the Fed continuing to raise interest rates, promising little relief for potential buyers at least for the rest of the year.

Tomcak, 39 and a project manager for a commercial painting company from Aurora, Colorado, had hoped to lock in a monthly mortgage payment of $2,350. His mortgage consultant recommended dropping the maximum price he’d pay for a home, first to $300,000 then to $200,000.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Housing market chills as mortgage rates, prices scare buyersIt's the summer that cooled off the housing market.
Fonte: CBS DFW - 🏆 542. / 51 Consulte Mais informação »

US housing market chills as mortgage interest rates and high prices scare off buyersSales of previously occupied homes have fallen for five straight months, during what is generally the busiest time of the year in U.S. real estate.
Fonte: adndotcom - 🏆 293. / 63 Consulte Mais informação »

Housing market chills as mortgage rates, prices scare buyersRising mortgage rates have combined with already high home prices to discourage would-be buyers.
Fonte: wjxt4 - 🏆 246. / 63 Consulte Mais informação »

Builders 'pulling back' amid housing market uncertainty despite falling lumber prices: Industry insiderThe owner of Jaeger Lumber & Supply Co. in New Jersey, Bryan Jaeger, provided insight into trends he has been noticing as the price of lumber has dropped. Two things unrelated to one another. Try again. The January6thHearing yessersarday (sorry, hard word) was horrifying. I will not vote Republican again until they move off this dangerous and unpatriotic path.
Fonte: FoxBusiness - 🏆 458. / 53 Consulte Mais informação »