Home Prices Slowing Down In November
The trend of rising home prices seems to have reached a plateau in November. With mortgage rates swelling, it is taking a toll on home price growth. This, in turn has had an effect on buyer capacity.
Mortgage rates for an average single family home with a 20% down payment have almost doubled over last year. This pushed a number of buyers to revisit their budgets. These numbers have made it difficult and challenging for first time home buyers. Melissa Dittmann Tracey noted in an article she penned for the National Association of Realtors magazine, ” A typical starter home worth about $338,700 would have a monthly mortgage payment of $1,808 with a 10% down payment, an increase of nearly $600 compared to a year ago. First-time buyers typically spend nearly 38% of their income on mortgage payments; most financial experts consider households financially burdened when they spend more than 25% of their income on housing.” (Credit and Full Article: Melissa Dittmann Tracey, NAR Magazine)
A Silver Lining
However, it’s not all doom and gloom. Economists are predicting that the mortgage rates will also plateau. Home prices should re-regulate as well. So although the mortgage rate may be high at the moment, it may allow for price improvements and more negotiations. The best advice to follow right now is to have the right agent working with and for you.
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