Many homebuyers on the market are hoping to snag a house before mortgage rates rise again, and before home prices become even more expensive.
Daren Blomquist, senior vice president of Attom Data Solutions, says that “affordability is getting worse and something’s got to give. Mortgage rates put more pressure on the affordable pressure cooker.” Reuters reports that mortgage interest rates may potentially increase to nearly 5 percent, making home payments more expensive. Blomquist says, however, that while some buyers could get priced out of the market, a drop in demand could signal a drop in home prices.
Many potential homeowners are finding that as expensive as it is to buy a house, now may be the last opportunity before mortgage rates start to rise. Buying a home is more affordable than renting in only nine of 39 major metropolitan areas, according to research firm ATTOM Data Solutions: Dallas, Miami, San Antonio, Detroit, Philadelphia, Tampa-St. Petersburg, Cleveland, Pittsburgh and St. Louis. Good luck affording either in the other markets.
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