Jay Walsh
Senior Loan Officer
| NMLS #65792
Branch NMLS #2477720
(516) 526-5041
jwalsh@cmghomeloans.com
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Blog posted On November 08, 2024
Market Update: With rates now averaging 7.13%, buyers face higher costs while builders navigate an affordability crunch. Here’s how we can turn these challenges into sales opportunities.
Mortgage rates increased to 7.13% after the election, a jump that highlights the financial pressures impacting buyers and builders alike. The recent rise in rates reflects broader economic trends, including inflation concerns and Treasury yield shifts, which have kept rates elevated. This high-rate environment is dampening buyer affordability and weighing on builders, with monthly payments on a $400,000 home now up 11% since early September.
READ MOREWhy Lower Interest Rates Won’t Solve the Affordability Challenge for Home Buyers
Blog posted On September 13, 2024
Mortgage rates may have come down slightly, but affordability remains a significant challenge for home buyers, particularly as home prices continue to climb. Typically, rising rates cause home prices to cool, however the current market is anything but typical. The latest U.S. National Home Price Index from S&P CoreLogic and Case-Shiller shows that home prices reached record highs in June, despite rising interest rates.
READ MOREAddressing Affordability Challenges in Today's Housing Market: Effective Financing and Marketing Strategies for New Home Builders
Blog posted On July 31, 2024
By Contributing Author Anthony Grasst, VP National Builder Division
Current Market Issues and Challenges
The housing market is facing significant challenges. According to a recent survey by the Mortgage Bankers Association, many potential home buyers are waiting to purchase in hopes that interest rates will go down. The decision for many to wait is causing an overall drop in mortgage demand. This trend is exacerbated by rising home prices and high mortgage rates, both of which have contributed to a decrease in affordability and buyer hesitation.
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