There are three common challenges that affect the affordability of the buyers nowadays and these are mortgage rates, home prices, and wages.
Len Kiefer, explained that rates for 30-year fixed mortgages in the United States have risen dramatically up 3.83 percent since the end of the previous year. Mortgage rates become the news headline which people are focused on because the price to finance a house purchase is affected by this. Experts say that mortgage rates and inflation are relative to each other. As long as inflation is strong, rates will probably stay high. Home prices have also become a topic in the news since the pandemic. As a result of high prices, buyer competitiveness and bidding wars have eventually decreased. The affordability and spending power of the buyers are more difficult to maintain when mortgage rates and property prices are both high. Everything depends on your local market—consulting with a trusted real estate expert can give you insight on what's happening in your area specifically. The rise in wages is the only positive factor among the three because it supports people with home affordability.
Reach out for the most recent information on what experts are saying and what it implies for your area if you want to know what's happening with property prices or mortgage rates.
Crew, K. (2022a, November 8). Key Factors Affecting Home Affordability Today. Keeping Current Matters. https://www.keepingcurrentmatters.com/2022/11/07/key-factors-affecting-home-affordability-today/