The average interest rate on 30-year fixed mortgages in the United States reached 5.53% this week, more than double that of a year ago. According to Erin Sykes, Chief Economist at Nest Seekers International, this could increase the cost of buying a home beyond the means of many aspiring buyers, but some house hunters could benefit. there is.
As mortgage rates rise, real estate demand tends to soften, ultimately leading to lower home prices. If mortgage rates continue to rise to 7%, Sykes estimates that home prices in some parts of the United States could fall by as much as 40%.
“In some situations, there may be really good shots to get a home at these high prices and affordable prices,” she told CBS News.
Florida sellers have already begun to lower prices as mortgage rates are rising, Sykes said. Midsummer may be the most convenient time for homebuyers, she said.
So far, mortgage rates are rising as the prices of residential real estate continue to rise.It’s pushingIt’s beyond the understanding of many middle-class Americans who have to compete with investors and high-income buyers. Soaring inflation, Making it even harder for homebuyers to save for down payments, Sykes said.
Higher mortgage rates add thousands of dollars to payments to homebuyers for the entire duration of the loan. $ 429,000 Home — Median According to the Federal Reserve Bank of St. Louis, home prices cost an additional $ 5,750 per year at today’s rates.
Mortgage rates areHowever, they have taken off since the Federal Reserve announced in March that it would raise the benchmark. ..