Mortgage Payment Crisis: Record Highs and What's Next
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In this episode, we dive into the complexities of today’s housing market and explore whether now is the right time to buy a home. Topics include:
In this episode, we dive into the complexities of today’s housing market and explore whether now is the right time to buy a home. Topics include:
- Watching home prices, stalking Zillow, and eyeing for-sale signs – is now the time to buy?
- Sellers becoming more flexible:
- Allowing inspections.
- Accepting mortgage contingencies.
- Increased inventory with less competition.
- Home prices leveling off but not significantly dropping:
- Slight discounts on overpriced homes.
- Properly priced homes remaining steady.
- The affordability challenge:
- Interest rates have skyrocketed from 2% to 7%, with projections of 8–8.5% in the near future.
- Higher interest rates drastically impact monthly mortgage payments.
- The math of housing affordability:
- 35% of median income now goes to a mortgage payment on a median home.
- Private mortgage insurance (PMI) for less than 20% down increases costs further.
- The highest payment-to-income ratio since October 1985.
- Potential strategies:
- Downscaling your home price expectations to stay within budget.
- Considering refinancing if rates decrease in the future, while weighing the risks of high payments now.
- The dilemma of waiting for home prices to drop but facing even higher interest rates later.
- Inflation’s role in maintaining high prices and housing market pressure.
Join the Conversation:
We’d love to hear your thoughts! Share your experiences with home shopping, mortgage payments, and affordability challenges in the comments.
We’d love to hear your thoughts! Share your experiences with home shopping, mortgage payments, and affordability challenges in the comments.
Tune in for essential insights into navigating today’s unpredictable housing market.
