Low inventory, high interest rates lock potential homebuyers out of housing market

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For the first time in nearly two decades, mortgage interest rates hit 8%, a rate so high that it's locking some would-be homebuyers our of the housing market.

For the first time in nearly two decades, mortgage interest rates hit 8%. That, combined with low inventory on Long Island, is locking a lot of first time homebuyers out of the market.

Bedi's Long Island clients are not alone. That's because the average monthly mortgage on a new home is 52% higher than the average rent on an apartment.The firm says mortgage and rent used to cost roughly the same. So what do you do if you want to buy in a tight housing market with mortgage interest rates now topping 8%?

 

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