The latest report from Zillow, the specialized real estate site, indicates that home buyers are facing a double blow this spring: the rapid increase in mortgage rates and the affordability challenges caused by the record growth in the value of home.
Zillow indicates that the cost of a 30 year mortgage on a typical US home. The US is now 19.5% higher than it was just three months ago, and despite this, the pace and volume of sales rebounded in March, demonstrating the number of homebuyers willing and able to meet current asking prices.
The real estate site’s monthly report also notes that the typical US home Today is worth $337,560 dollars, one 20.6% more than a year ago, the twelfth consecutive month in which a new record for annual growth in the value of the v house.
“Mortgage rates, which were below 3 % a year ago, they entered March at 3.51% and rose to 4.54% during the month. Combined, rising home values and mortgage rates have raised the typical US monthly home payment by 38 % more than what it would have been a year ago, assuming a 30 year mortgage with a down payment of 20%”, indicates the report.
“Higher mortgage rates were anticipated this year, but the speed of their increase has been impressive”, said Jeff Tucker, senior economist at Zillow. “Record low mortgage rates have been an affordability lifeline during the pandemic, keeping monthly payments in check even as prices rose rapidly. March was the biggest test yet to determine if enough buyers can meet the new asking prices to keep home values growing at a record pace, and the answer was ‘So far, yes’.
For Tucker, there will come a point where the cost of buying a home will deter enough buyers to bring price growth to Earth, but for now, there’s plenty of inventory as the buying season approaches. houses is launched.
A positive point for homebuyers, according to the expert, is that the so The long-awaited seasonal inventory increase finally came in March: “After six straight months of inventory declines, a streak that lasted longer than usual for the year, there was a 000.6% more available homes in March than in February, the largest jump in a month in Zillow records”.
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