Higher Mortgage Interest Rates: Impact on Buyers

Mortgage interest rates have been rising, making it difficult for buyers to afford homes. Some buyers are being shut out of the market, while others are forced to accept higher monthly payments or settle for less expensive houses. Sellers are hesitant to move because they have low mortgage rates. However, home prices are still rising in some cities, creating a geographic disparity. Despite rising mortgage rates, mortgage demand has risen slightly, but it is still lower compared to a year ago. The National Association of Realtors president, Kenny Parcel, has resigned amidst allegations of sexual harassment. Mortgage interest rates are expected to remain high due to inflation, and while a return to 3% rates is unlikely, rates may ease slightly in the future. Overall, the housing market is facing affordability challenges, with slower home sales and low inventory levels.