for the most popular 30-year fixed mortgage is 3.84%. The NAR projects the 30-year fixed mortgage rate will close the year at 3.9%.
By making home mortgage loans gradually costlier, the Fed hopes to stem the surging price increases that have been squeezing consumers and businesses. On December 30, 2008, the Case-Shiller home price index reported its largest price drop in its history. The credit crisis, resulting from the bursting of the housing bubble, was a cause of the Great Recession in the U.S.
"Inventory is terrible. There really is nowhere near enough to meet the very high demand. We are seeing between 10-20 and more buyers for every home, driving prices up on a weekly basis," Melendez added. According to the NAR, states surrounding California including Arizona, Nevada, Idaho, Oregon and Washington State are outperforming California in the housing market, principally because Californians are moving there seeking better affordability or able to due to increasing work-from-home options."It’s been dramatic and everything looks like it’s on sale to CA money," Fox said of Californians moving into the Phoenix real estate market. "The prices have soared with silly bids.
"We are seeing a lot of new home starts and new subdivisions being developed. Most are in the farther suburbs," Jurmo added of its construction uptick in Michigan. "I think unreasonable build times and resources have further fueled the strain on inventory and competition," Fox added. "If you want to buy, it is totally possible, but you will be pushed out of your comfort zone, so have a plan in place with an agent you trust," Melendez said.
What goes up, must come down.
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