Earlier this week rates for a 30 year mortgage interest rate rose to 4.95% which is the highest its been since 2013. According to the Real House Price Index, if income remains constant while mortgage rates increase a consumer’s buying power will decrease meaning they aren’t able to afford mortgages. On top of the rising interest rates, prices in other sectors are also rising which negatively affects a consumer’s house buying power. As the spring season is primetime for the housing market because most people choose to enlist and buy houses during this time, the market supply will be tighter which causes prices to further increase.
Prices will keep going up and it makes me think that the only place I will be able to buy a house is in Texas or somewhere else down south.
ReplyDeleteI think it will be hard for a lot of people graduating from college to buy homes because of this. This makes me feel like I am not going to buy a home anytime soon.
ReplyDeleteI think we could see a major issue in the upcoming months/years for the housing market in our economy. As interest rates and mortgage rates continue to increase we have also noticed that housing prices are increasing. This may not be an issue for current homeowners, but new homeowners entering the market could be discouraged from investing due to increasing costs.
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