Don’t Waste Your Money: Housing Market Slowdown
CHARLOTTE, N.C. — Rising mortgage rates, coupled with soaring home prices, are now creating a perfect storm that is suddenly pricing thousands of Americans out of the housing market. Home buyers right now are being hit with a one two punch, that had Nicole Bouchard telling us a few weeks ago she worried about being priced out.
CNBC now says many first time buyers are giving up….with home prices at a record, and mortgage rates jumping from 3 to 5 percent this year. Their report says a $300,000 home in 2019 would have cost you $1,192 a month. Last year, that same home would have cost you $360,000, and would have cost $1,245 a month.
This year, that same house has gone up in value to $438,000….and at a 5.5% interest rate, you will have to pay $1,991 a month. That is $700 more a month than a year ago. But from the “doesn’t that stink” file, a third reason the housing market appears to be slowing: Inflation.
Yahoo News says the housing market may be entering a “great deceleration…” as consumers decide to hold off on major purchases due to high gas prices, grocery prices, and concerns about everything getting even more expensive. The one upside to all of this: If you are house hunting, you should find less competition, and that way you don’t waste your money.