Higher mortgage rates forcing home buyers out of housing market

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Mortgage rates have soared from 3% to over 5% in the past year, putting a new home out of the reach of some buyers. But that could be good news if you are house hunting, agents say.

With mortgage rates above the 5% mark and prices still at all-time highs, home buyers face new challenges this summer.

But that was even before this year's big jump in mortgage rates, which suddenly lowered the amount they could comfortably afford to spend.But then rates surged from 4 to 5%, and briefly to 6 percent, adding hundreds of dollars to their monthly payment. Agents say when mortgage rates hit 5 percent this year, they immediately started to see some buyers drop out of the market, primarily people who had based their purchase on 3 and 4 percent rates.

"It is giving people a little bit more of a chance to get out there and get more of a selection," she said."You have a little more time," she said."It is not as hectic."Nathan Grant of MoneyTips.com says you can't control mortgage rates.He says, however, there are factors you can control, such as:"Let's say we got the home, and we were hoping to refinance a year later," he said.

 

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Denver refusing to build high density housing is the real problem. We need to repeal minimum setback and parking requirements. And rezone everything for mixed-use

And by 'soared' the Biased Media means it's still lower than in 2008 before the Republican Recession of 2008. Mortgage Rates have been higher than 5% for decades. SMH, be better hire a real reporter

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The housing market, at last, appears to be cooling offAfter a stunning rise in home prices enriched sellers and keyed up buyers into frantic bidding wars, there are signs that the U.S. housing market is starting to cool amid a surge of new inventory and higher interest rates. So the people could buy the house which the budget which they have it on their pocket , think if the properity give their flexible prices i think it will blooming again, like a sun flower blooing on the roof ahhhem The market started to cool off in San Diego beginning in April. Houses are being discounted 10%-15%. Regardless of inventory. Phoenix has seen double digit inventory. By December it will be a buyers market. LOL yeah right
Source: washingtonpost - 🏆 95. / 72 Read more »