![]() They’re rising, but this time for a real reason. Latest data from CAR.org in California reveals the shocking truth about mortgage payments. Two years ago, Attom Data released a report that says a median-priced 3 bedroom home is a better choice than renting in two-thirds of the US. Heading into a recession, this is dangerous. Given some families must buy because rentals aren’t available, it means many will overextend themselves financially. Likely not enough to satisfy demand however.īuyer demand is still high. ![]() So rising rates could free up some properties. And with rates as high as they are now, those refinancing soon at the new rates may have to sell their homes. Big Mortgage Payments are PainfulĪnd when mortgage rates double from 3.3% to 6.3%, the resulting mortgage payment is unbearable for home buyers. It’s 2023 that’s shaping up to be a strong year for landlords and property managers, and one where renters will be competing for units. Of course a lack of supply and new restrictions on development and investment could leave some without a place to live in 2023. Fortunately, landlords and the rental housing market are trying to provide relief. Rocketing mortgage rates are exceptionally high compared to the lows we’ve enjoyed. They will be shut out of the single family housing market and forced into an undersupplied rental market. US Fed rate hikes, and increasing loan qualification requirements means the question might be moot for many Americans. That means, the question of buy vs rent may have a different answer in 2022 - to renting being the wisest choice in 2022/2023. The purchase of a home is reaching an all time level of difficulty. ![]()
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