ResiClub co-founder and editor-in-chief Lance Lambert talks about the U.S. housing affordability crisis in “Making Money.”
Mortgage rates this week exceeded 7% for the first time in 2024 and continue their upward trajectory, putting further pressure on the housing market.
Freddie Mac’s latest Primary Mortgage Market Study, released Thursday, found that the benchmark average interest rate 30 year fixed mortgage It rose from 6.88% last week to 7.10% this week. A year ago, the average interest rate on a 30-year loan was 6.39%.
An “open house” flag flies in front of a home for sale in Alhambra, California, on January 18. (Frederick J. Brown/AFP via Getty Images/Getty Images)
The average interest rate for a 15-year fixed mortgage rose to 6.39% from 6.16% last week. A year ago, interest rates on 15-year fixed bonds averaged 5.76%.
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“With interest rates trending higher, potential homebuyers are either buying before rates rise further or hold off on buying in hopes of lower rates later this year,” said Sam Cater, chief economist at Freddie Mac. I am deciding whether to do so.” “While the number of purchase applications rose slightly last week, it remains unclear how many homebuyers will be able to withstand future interest rate increases.”
In a wide-ranging interview on “Kabuto: Coast to Coast,” Corcoran Group founder and “Shark Tank” star Barbara Corcoran discusses real estate market trends and challenges.
The combination of persistently rising interest rates and record home prices has kept the housing market stagnant for months as many prospective buyers and sellers wait for affordability to improve.
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According to a recent Realtor.com survey, nearly 8 in 10 potential sellers still feel trapped in their homes, and nearly half of these “trapped” sellers plan to wait for interest rate reductions. It states that.
Aerial view of a home in Boise, Idaho, July 1, 2022. (Jeremy Erickson/Bloomberg via Getty Images/Getty Images)
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That’s contributing to ongoing inventory shortages, and home prices are soaring, putting them out of reach for many potential buyers.
