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The Two Big Issues the Housing Market’s Facing Right Now

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  The Two Big Issues the Housing Market’s Facing Right Now The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at  First American,  explains  the root causes of today’s low supply: “Two dynamics are keeping existing-home inventory historically low –  rate-locked existing homeowners   and   the fear of not finding something to buy .” Let’s break down these two big issues in today’s housing market. Rate-Locked Homeowners According to the  Federal Housing Finance Agency  (FHFA), the  average interest rate  for current homeowners with mortgages is less than 4% ( see graph below ): But today, the typical mortgage rate offered to buyers is  over 6% . As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being  rate locked . When so many homeowners are rate locked and reluctan...
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Buying a Home May Make More Financial Sense Than Renting One

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  Buying a Home May Make More Financial Sense Than Renting One If rising home prices leave you wondering if it makes more sense to  rent or buy  a home in today’s housing market, consider this. It’s not just  home prices  that have risen in recent years – rental prices have skyrocketed as well. As a recent article from  realtor.com   says : “The median rent across the 50 largest US metropolitan areas reached $1,876 in June,  a new record level for Realtor.com data for the 16th consecutive month .” That means  rising prices  will likely impact your housing plans either way. But there are a few key differences that could make  buying a home  a more worthwhile option for you. If You Need More Space, Buying a Home May Be More Affordable What you may not realize is that, according to the latest data from  realtor.com  and the  National Association of Realtors  (NAR), it may actually be more affordable to buy...
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