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How Rising Mortgage Rates Are Affecting the Housing Market

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This is a good time to be a seller, assuming you don’t have to buy. Christopher J. Waller, Governor of the Federal Reserve Board, has survived this.

“I sold my entire St. Louis home to a cash buyer yesterday. I didn’t inspect it,” Waller said in a panel discussion on Monday. “But I’m trying to buy a house in Washington, DC, and now I’m on the other side, saying,” This is insane. ” “

He said the sharp rise in mortgage rates in recent months should affect what happens in homes.

The lack of new buildings these days was not due to a lack of interest. Millennial members are currently in their late 20s and early 40s, at the height of home buying. Their desire to buy a home and start a family has clashed with supply shortages, leading to higher prices.

Shutdowns in the early months of the pandemic delayed homebuilding, but Housing begins It has been upward recently. Completion of a new house However, due to tight labor markets and supply chain disruptions, homebuilders are using wood, dishwashers, and more. Garage door — And workers.

The feeling that prices, supply shortages, and the only way to win a bid war are to abandon contingencies and inspections: all of this has run out of buyers like Armand de Brignaceuver, a 34-year-old accountant in Whitia, California. rice field. Villanueva and his wife made an offer after the offer for the last few months of 2021 to replace an 800-square-foot two-bedroom home with a larger home for future children, each time. lost. They increased their budget from $ 700,000 to $ 800,000. They got rid of accidental loans in the hope that they would be more competitive. Through two dozen offers, it wasn’t enough yet.

Finally, as the end of the year approached, they offered $ 825,000 to the homes listed for $ 750,000. It’s close to $ 1 million.

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