(WHTM) — Rising mortgage rates, coupled with soaring home prices, are now creating a perfect storm that is suddenly pricing thousands of Americans out of the housing market.
Home buyers right now are being hit with a one-two punch that had Nicole Bouchard saying a few weeks ago that she worried about being priced out.
“If the cost of the house is still inflated, and rising mortgage rates, what could we afford,” Bouchard said.
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CNBC now says many first-time buyers are giving up with home prices at a record and mortgage rates jumping from three to five percent this year. CNBC also said a $300,000 home in 2019 would have cost you $1,192 a month.
Last year that same home would have cost you $360,000 and would have cost you $1,245 a month. This year, that same house has gone up in value to $438,000 and at a 5.5% interest rate, you will have to pay $1,991 a month. That is $700 dollars more a month than a year ago.
But from the “doesn’t that stink” file, a third reason the housing market appears to be slowing: inflation.
Yahoo News said the housing market may be entering a “great deceleration”, as consumers decided to hold off on major purchases due to higher gas prices, grocery prices, and concerns about everything getting more expensive.
The one upside to all of this: if you are house hunting, you should find less competition, so you don’t waste your money.