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Despite home borrowing costs revisiting the highs seen in November 2022 and even reverting to highs seen back in 2001, housing prices continue to elevate…
Monthly mortgage payments are up almost 20% from a year ago. Additionally, Freddie Mac reports the average 30-year fixed rate mortgage is hovering near/above 7%, up from 5% seen a year ago and up from sub-3% seen two years ago.
This sizable cost increase has made affordability for buyers a big problem. And for potential sellers with mortgages lower than 4%, there is little incentive to make a move only to take on a new mortgage at a much higher rate.
Home prices remain elevated and have resisted the urge to move lower, despite higher interest rates. A recent report shows that prices have now hit new highs in 30 of the 50 largest markets while several northeastern metros are currently 5-8% above 2022 highs. Scarce inventory in the existing home sale market is the catalyst behind higher prices.
Home equity is just above $16 trillion, with nearly $10.5 trillion of that being “tappable equity”. This highlights the wealth created through home ownership.
Bottom line: regardless of all the numbers and stats, when it comes down to it, people need a place to live and that occurs every day of the week whether it be renting or owning. It's never a bad time to fulfill the American dream and dive into the pool of homeownership, as long as it makes sense for your personal finances and life timing.
If you have questions regarding your specific situation as it relates to housing, reach out any time…we’re happy to help!