Kristi Bash

Main Menu

  • Home
  • South Carolina Real Estate
  • Mortage Loans
  • Home Lenders
  • Real Estate Trends
  • Money Management

Kristi Bash

Header Banner

Kristi Bash

  • Home
  • South Carolina Real Estate
  • Mortage Loans
  • Home Lenders
  • Real Estate Trends
  • Money Management
Real Estate Trends
Home›Real Estate Trends›Mortgage rates rise, but housing market remains hot

Mortgage rates rise, but housing market remains hot

By Carmen Roberson
June 20, 2022
0
0

On Tuesday, the National Association of Realtors will release the latest existing home sales data. The numbers should provide a closer look at the big shift underway in the US housing market as mortgage interest rates continue to rise.

The real cost of buying a house is skyrocketing, according to Lawrence Yun, the association’s chief economist.

“The same house, buying now versus a year ago, you’ll increase the monthly mortgage payment by about 50 percent.”

That’s because house prices keep rising, so buyers need to get bigger mortgages. And interest rates on those mortgages are now around 6%, down from around 3% a year ago.

“We were just waiting for that to happen, where mortgage rates would go up and reduce what I would call artificially strong activity on the buy side,” said Brad Dillman, chief economist at Cortland.

The impact of the Federal Reserve’s campaign to raise its benchmark rate is still being felt. Lately, Redfin chief economist Daryl Fairweather has used the term “hibernation” to describe this changing housing market.

“Just in terms of, like, the little activity that’s going on right now for buyers and sellers,” she said.

The data shows that the number of pending sales is down 8% from last year, thanks in large part to these higher mortgage rates. But, she added, this is not a weak housing market.

“Homes are selling as fast as ever. Fifty percent of homes are still under contract within two weeks,” Fairweather said.

Buyers are adapting to the rapid pace of change, said Jonathan Miller, CEO of real estate appraiser Miller Samuel. But the sellers?

“It’s hard for them to capitulate to market conditions because they’re kind of value-driven, and then all of a sudden the conditions change,” he said.

Miller added that a market in which bidding wars for homes have become the norm is simply not sustainable.

There’s a lot going on in the world. Through it all, Marketplace is there for you.

You rely on Marketplace to break down world events and tell you how it affects you in a factual and accessible way. We count on your financial support to continue to make this possible.

Your donation today fuels the independent journalism you rely on. For just $5/month, you can help maintain Marketplace so we can keep reporting on the things that matter to you.

Related posts:

  1. 2 Arizona cities within the high 10 for home worth development over the previous decade
  2. Redfin: Promote your home? Checklist it midweek
  3. Phoenix industrial market continues to increase in first quarter
  4. Cohen & Steers launches new private investment platform

Recent Posts

  • The best places in Europe to buy a luxury second home, rental property
  • CLAROS MORTGAGE TRUST, INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)
  • I’m the chief economist for a mortgage company that has funded over $100 billion in loans. These are 3 things to know about the housing market now.
  • GLADSTONE COMMERCIAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q)
  • Motivation key for sellers as the real estate market stabilizes

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • August 2020
  • August 2019
  • July 2019
  • June 2019
  • May 2019

Categories

  • Home Lenders
  • Money Management
  • Mortage Loans
  • Real Estate Trends
  • South Carolina Real Estate
  • Privacy Policy
  • Terms and Conditions