According to the website Bankrate, the 30-year-fixed mortgage hit 7.896% on April 22nd. This trajectory of interest rates for home mortgages continues to escalate, creating a greater demand upon buyers not only for down payments but also in their monthly budgets for housing. According to Redfin, this is pushing the cost of a home purchase up to a new all-time high. According to the report, the monthly payment for a home hit $2,775, which is a record-high and an 11% increase from 2023.
These high mortgage rates are not only keeping home buyers off the fence, but completely out of the yard. With the high interest rates, many are expecting that inflation is out of control for home buyers and for the rest of the economy. Many of the financial experts are not expecting any more than possibly one rate cut for the rest of the year. And Federal Bank chair Jerome Powell, also confirmed that the Fed is not going to make many moves for the rest of the year.
On top of the high mortgage rates, reports from March 2024 indicate that home prices are not being impacted by the climbing cost of owning a home. According to Redfin, the median sale price over the last year for an existing home was $380,250, this is 5% higher than the median sale price just one year ago in 2023.
In addition, the National Association of Realtors reported that existing sale home prices moved higher by 4.8% over the last 12 months. The inventory shortage of homes for sale continues to be one of the factors driving home prices higher, forcing home buyers to pay more to buy what they could have bought last year for 5% less.
In the face of all these conflicting demands, inventories appear to be growing across all four US regions, with some people hoping and believing that sellers will have to make concessions if they want to sell their homes.
Still home buyers, who are aggressive enough, can shop around to find lower rates on the conventional 30-year fixed mortgage ranging from 7.297%, to 7.44% and even as high as 7.942% with a 20% down payment. Buyers are also scouring properties in less expensive areas that don’t wreck their budgets.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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