From Fox Business:
If you’re looking to buy a home soon, you’re in luck. After two years of record high sales, data shows the housing market is starting to cool down, but there is a catch.
For the first time since March 2021, the average home is selling for less than its list price, but high mortgage rates are still impacting what people can afford.
Mortgage rates are the highest they’ve been in 14 years, reaching nearly 6%, according to the real estate company Redfin.
“This is the sharpest turn in the housing market since the housing market crash in 2008,” said Daryl Fairweather, Redfin’s Chief Economist.
While home prices are still higher than a year ago, with the average home now selling for just under $370,000, inflation and high interest rates are slowing down the market.
“We haven’t seen interest rates this high since 2008, 2007, so it is a big change from the housing market we’ve all gotten used to,” Fairweather said.
With these higher interest rates, mortgages are up about 40% from a year ago.
“Buyers just don’t have the 40% extra money to put towards housing every month,” Fairweather said. “A lot of homebuyers had to drop out and go to the rental market instead or choose not to buy that second home or investment property.”