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Interest mortgage rates today are 4/24%! My head is spinning. This will of course mean more families can not afford to buy homes in this market. I am wondering if this will cause the market to stall a little, or cause prices not to rise as fast as they have with multiple bids?
Until there is a SIGNIFICANT increase in inventory of homes available for purchase in the Triangle; don't count on the supply/demand curve to flatten to a point where prices do the same.
I agree with previous poster....I think the inventory (lack of) will continue to be the main driver in the market vs changes in interest rates. I'm not saying it will have no impact, but I don't expect things to change that much
I agree that rates are still historically low and it will likely not affect people who are coming from other markets with cash. Inventory is still low.
Yet the rate on a savings account is still 0.5% :facepalm
The Fed rate is still zero. They haven't raised it yet. The reason mortgages rates are surging is because the price of mortgage bonds are plunging. The Fed is not leading the charge against inflation, they are being dragged behind. They are happy printing money. After the Fed starts raising the official funds rate, you will see bank account interest rates sloooooowly creep up.
Housing affordability is low due to price appreciation. Shoppers are getting "buyer fatique" and putting home shopping on pause, sick of looking. 4%-5% mortgage interest rates will hurt affordability further. Of course it is going to soften the market.
Investors are a primary reason for the high home prices. Investors can dump homes on the market just as fast as they snatched them up. Investors can turn a housing boom to a bust overnight if they dump their stocks at once and inventories surge. I realize that can only happen if they fail to meet their rental targets and decide to sell rather than keep and hold through down times. People think rent/housing can only ever go up, but that is never the case. Both cycle.
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