Still, homeowners are faring well, with property prices surging despite a pullback in buyer demand, says NAR’s chief economist.
Monthly mortgage payments are 60% higher than a year ago, according to NAR. Buyers can save by shopping around for different types of loans.
Borrowers stand to save thousands by gathering multiple quotes from lenders.
If borrowing costs get just a little higher, the average household may be blocked from homeownership, warns an NAR economist.
Pending home sales in July dropped nearly 20% year over year as the housing market continues to slow. But a turnaround is in sight, says Lawrence Yun.
Housing affordability hit a 33-year low in June, according to NAR data. But an increase in inventory and stabilizing mortgage rates may stem the tide.
As inflation appears to have peaked, borrowing costs are starting to stabilize.
NAR’s chief economist shares what now needs to happen to bring down borrowing costs and increase affordability for home buyers.
Though weekly changes in borrowing costs are volatile, housing activity is reaching more balanced levels, says Freddie Mac’s chief economist.
The average monthly mortgage payment has fallen 12% reduction in just two months as high borrowing costs moderate, says NAR Chief Economist.
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