Dr. Perryman explains the steep rise in mortgage rates and how this is affecting homebuyers.
The rate on 30-year mortgages has topped 7% for the first time in more than 20 years. The sharp rise from about 3% just a year ago is causing fallout for homebuyers and the housing market. While the current situation is going to be costly from several perspectives, a market crash akin to the Great Recession of 2008 is NOT in our future. Let’s briefly explore.
Things are tough for anyone trying to purchase a house, with a double whammy of rising prices and increasing interest rates. Inventories are very low, and supply chain issues and labor shortages continue to complicate construction.