Photo: CoreVest Finance / Courtesy
By: Real America News Updated 27 Sea 2022, 03: 15 pm EDT
The outlook for buying a home in the United States is not encouraging, taking into account that interest rates make costs higher. During the most complicated moment of the Covid pandemic, these represented a maximum of 3%.
Today, there is a great demand for housing nationwide, average fixed mortgage rates at 30 years are located at 4.95%, according to Mortgage News Daily. This figure reached its maximum this week, since Tuesday represented 4.30 %.
Because of how the real estate market has moved in recent months, real estate companies have indicated that the peaks in interest rates for this week are a surprise. The average of 4.80% is almost one and a half percentage points higher than the rates at the beginning of the year.
The rise in rates could cause Americans to desist from acquiring a property. These high percentages make housing less affordable.
According to the National Association of Realtors, pending sales were already falling in recent months mainly due to low inventory. In addition, the organization pointed out that mortgage applications also fell.
For its part, Zillow, a company dedicated to real estate, announced that the inventory of houses in the United States fell to 729,000 in February, a decrease of 25% with respect to the previous year.
According to the Zillow report, the inventory has pushed up house prices. Previously, buyers, at least, had low interest rates to act as a counterweight.
The increase in rates will be significant for buyers, An example of this is that the average monthly loan payment of $300,03 dollars to be paid to 30 years, it would be $1,601 dollars with a rate of 4.95% .
This figure is significantly higher than the one recorded in January, which was 3.30%, the payments represented $1,339 dollars per month. The rise in monthly payments would cause an imbalance in the budgets of many families.
Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, indicated that the housing market is cooling rapidly and sales will fall between 20% and 30% in the middle of the year, as reported by Yahoo.
You may also like:
–When do specialists believe that it will be profitable to buy a new house
–A Bank of America report assures that it is “the worst moment in history” to be able to buy a house in the US
–Will they convert the historic Sears building into homeless housing?