The bottom line is that it’s getting more expensive to buy a home. First-time buyers are entering the market in droves only to find that their options are remarkably limited, if available at all.
What Do Rising Mortgage Rates Mean For First Time Buyers?
From CNN Money, “Higher interest rates make it more expensive to borrow money… The higher rates will make house hunting even tougher: Wanna-be homeowners are already facing significant headwinds thanks to low housing supply. “Competition is pretty fierce,” said Len Kiefer, deputy chief economist at Freddie Mac. “Folks that are looking may be disappointed this spring. They are seeing prices move higher and interest rates are up, which could mean you can now afford less.”
From Business Insider, “Mortgage rates follow the same path as long-term bond yields. According to data released by Freddie Mac last week, the 30-year, fixed-rate mortgage rate increased to 4.43%, up 0.5% from the beginning of the year and the eighth consecutive week of rising mortgage rates. A higher mortgage rate means reduced house-buying power. However, the root cause of higher inflation and rising mortgage rates is surging wage growth. In fact, our estimate of average household income, based on Census and Bureau of Labor Statistics data, is the highest it has ever been. On the other hand, 30-year, fixed-rate mortgage rates remain near historical lows.”
Stonebridge Mortgage Group can help you with your real estate loans and other mortgage solutions, both residential and commercial. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580.