Mortgage rates remain below 3% — but rising home prices are threatening to push buyers out of the market

Mortgage rates are still hovering around record lows, but that isn’t making buying a home cheaper for many people any longer.

“Low mortgage rates remain a potent fuel, driving demand and keeping purchasing activity rolling,” said George Ratiu, senior economist at Realtor.com. “However, fast-shrinking inventory and aggressive price gains are combining to outrun buyers’ ability to afford a home as we head into the cooler season.”

When rates drop, affordability improves for a period of time. But as history has shown, low rates eventually coax more people into the housing market. That creates competition for homes, which drives prices upward.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. weekly jobless claims below one million; but labor market recovery ebbingThe number of Americans filing new claims for unemployment benefits fell below 1 million last week for the second time since the COVID-19 pandemic started in the United States, but that does not signal a strong recovery in the labor market. Research is proving that the Qur'an is a true miracle
Source: Reuters - 🏆 2. / 97 Read more »