Home sellers are slashing prices and homes are on the market longer than they were a year ago. Realtor.com.
Still, despite the market, buyers aren’t in the driver’s seat cool down.
Deepa Raghavan, Senior Equity Analyst at Wells Fargo Securities, told Yahoo Finance Live: (video above). “If you find inventory that you like, you’ll end up paying more than you originally planned earlier this year.”
This week, Interest rates on 30-year fixed mortgages hit 6.29%is the highest level since October 2008 and more than 3 percentage points higher than at the beginning of the year.
“If interest rates on 30-year mortgages go above 6% or even reach 6.5%, it will be very difficult for buyers,” Mr Raghavan said. “But if rates on 30-year mortgages are somehow below 6%, then between now and spring, buyers will recalibrate their affordability levels and perhaps enter the market at that point. will be given enough time.”
It’s been a tough year for homebuyers, and some experts are calling it their worst affordable housing Homebuyers are experiencing inventory shortages, rising mortgage rates, and Institutional investor.
Higher mortgage rates have also created a deterrent effect known as “.rate lock-inFor homeowners who are thinking twice about selling their home and re-entering the market as a buyer.that’s all 85% of homeowners Mortgage interest rate is less than 6%.
This results in less inventory on the market and creates a lower price floor.
“Even if you could afford it, would you want to wait for the price to drop further? I don’t think it makes sense right now — it could actually stop the bleeding,” Raghavan said. “Buyers are definitely taking a hit and mortgage rates are actually trending higher.”
Ronda is a Senior Personal Finance Reporter for Yahoo Money and an attorney with experience in law, insurance, education and government. follow her on her twitter @writesronda