Higher rates and home prices have added $580 to a buyer’s monthly expenses.
More borrowers are taking out adjustable-rate mortgages as interest rates reach the highest averages since 2009.
Average closing costs for a single-family home rose 13.4% in 2021.
House hunters are getting a wake-up call that their budgets won’t go as far this spring.
“While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand,” says a Freddie Mac official.
A “lock-in” effect from ultra-low mortgage rates over recent years may prevent some homeowners from moving on.
Expect some easing in sales, though prices will continue to inch higher.
Since the start of the year, about $400 has been added to the average monthly mortgage payment on a median-priced home.
Inflation is at a 40-year high and higher spending on other consumer items may mean less money to spend on a mortgage payment.
Borrowing costs are quickly rising, and buyers want to lock them in ahead of further hikes.
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