Ne moves mortgage loan rates10/13/2023 ![]() Looking back, affordability in the ugly days of the Great Financial Crisis was 33.1%. (The worst affordability, by the way, was 36.7% in October when rates last topped 7%.) That June payment also claims 35.7% of the US median household income, the second-least affordable month in the past 37 years. Black Knight found that for June, with 30-year rates at 6.67%, homebuyers are facing a record-high $2,258 monthly payment for a loan on a median-priced U.S. And the last time it was slower was in 2010, long before the coronavirus hit.įew can make today’s mortgage finances pencil out.20% below the 5.38 million average of pre-pandemic 2015-19. ![]() 37% below the pandemic’s high of 6.85 million in November 2020.Homebuying nationwide hit a lethargic 4.3 million annual pace in May, according to the National Association of Realtors. The Fed’s high-rate policies throttled house hunting. (85% of all mortgages are at or below this rate.) Even owners at 6% face a 10% loss of buying power (just 7% of all mortgages are at or above this rate). Owners paying 5% face a 19% loss of buying power. Black Knight says 66% of all mortgages are at or below this rate. And, according to Black Knight data, 30% of all mortgaged homes have first mortgages at or below 3%. Owners who managed to land a 3% mortgage would be hit with a 37% loss of buying power if they replaced the current mortgage with a 7% loan. Consider the pickle for many mortgaged households, which can’t easily move because loan rates have roughly doubled.
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