U.S. home buyers are becoming more willing to purchase properties even as interest rates stay high, according to a study by Bank of America published on Monday.
Yeah I mean the alternative is to just abandon your plans for home ownership altogether. One of my neighbors is in real estate and says people are buying now and hoping the rates come down soon so they can refinance at a lower rate and drop the payment. It’s pretty dangerous since buyers are super stretched until they can refinance and it’s not even close to a guarantee that they will actually be able to get a lower rate anytime soon.
Because a few years ago(2019) a 350k home would be a mortgage payment of $1552. Now it is $2293. That’s a 47% increase in monthly payment. Most people didn’t receive 47% increase in compensation since 2019.
What choice do they have if they want to buy a home?
Yeah I mean the alternative is to just abandon your plans for home ownership altogether. One of my neighbors is in real estate and says people are buying now and hoping the rates come down soon so they can refinance at a lower rate and drop the payment. It’s pretty dangerous since buyers are super stretched until they can refinance and it’s not even close to a guarantee that they will actually be able to get a lower rate anytime soon.
Agreed. Most people buying homes have been planning to do so for a few years, why would they stop now?
Because a few years ago(2019) a 350k home would be a mortgage payment of $1552. Now it is $2293. That’s a 47% increase in monthly payment. Most people didn’t receive 47% increase in compensation since 2019.
Median Home Price is ~420k
https://www.rubyhome.com/blog/average-home-prices/