Americans who have been paying attention to the housing market realize that prices have been steadily climbing over the past several months. The fact that the supply of homes on the market has not been able to keep up with the demand for homes isn’t helping control housing prices. Now, those looking to purchase are now going to have to face increased mortgage rates as well.
Since at least 2018, mortgage rates have not exceed 5% for a 30 year mortgage. In reality, the rates above 5% in 2018 didn’t last long. Prior to that short lived stint above 5% in 2018, the 30 year mortgage has remained below 5% since 2011. Mortgage rates have been slowly increasing over the past several weeks as the U.S. responds to inflation and the economic impact on a global level due to the crisis in the Ukraine. The 30 year mortgage now finally surpassed 5% having jumped to 5.02%. According to an article published by CNBC.com, rates one year ago were at 3.38%.
With news of the continued rate increased coupled with the steady climb of housing prices, which have been reported to be up 20% since February 2021, buyers will feel the hit and many might just be priced out of some markets.
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