This week, homebuyers felt another blow due to high mortgage rates, as they remain at a level that was not observed in the last twenty-three years. High rates of properties become the biggest problem for buyers who feel priced out of the market since they cannot find a property that homeowners want to sell.
According to Yahoo Finance,
“The average rate on the 30-year fixed mortgage jumped to 7.57% this week from 7.49% a week prior, according to Freddie Mac. That is the ninth straight week rates remained over 7% and the highest level since the first week of December 2000, when the rate averaged 7.65%.”
The misery of homebuyers will not go away soon as there is a high chance that the environment of higher prices of properties is here to stay. The mortgage rate rose for the fifth consecutive week in the current market and the continuing geopolitical uncertainty.
However, on the other hand, the positive news for the market is that the economy and incomes continue to grow, and also at a solid pace. Despite this positive situation, the prices of houses and properties remain at a very high level, with a large number of affordability constraints. Hence, the demand for purchase remains at the lowest level in thirty years.
Consumers are disheartened about the market only because of high mortgage rates, as 83% of homebuyers feel that the price of mortgages will remain at this level. Furthermore, some of them even believe, and right so, that mortgage rates will rise further in the next twelve months.
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