Tumultuous U.S. Housing Market!

U. S. Housing Market

Dr. Talecia Y. Parks, D.B.A

Walden University: National Society for Leadership and Success

November 1, 2023

U.S. Housing Market

???????????Although the United States economic system continues to show growth. The S & P 500 increased by 510 points. There is a disparity between economic growth and the housing market. Mortgage rates are now approaching 8%. Home prices have continued to increase for the past few months. The sale of homes has not been this low in 10 years and there are fewer homes on the market. According to the data, home prices will remain high and interest rates and inventory will remain low for years to come. Home affordability is out of reach. The average 30 year fixed rate mortgage is 7.6 with a 20% down payment. A 30 year fixed rate mortgage with no money down is 8%. That means a mortgage payment is an average of $1,275 more each month than last year. Home prices would have to decrease by 40% and mortgage rates by 4% to make home purchasing affordable for the average family. Just a few years ago, you could acquire a home with an interest rate of 3% tot 4%. Yet, even some individuals who obtained the ideal mortgage rates are facing difficulty due to the increases in property taxes. In some areas, taxes have tripled forcing homeowners to look for homes elsewhere. There’s just one problem, the interest rates are no longer that low causing homeowners to grapple with the monthly mortgage payments going from an average of $2,400 to $3,400 each month.

Summary

???????????The housing market has continued to decline causing homeowners to reevaluate areas to live. It is important to conduct extensive research to determine the most effective approach to home-buying. Preview the property taxes to determine if the home and area is within your desired budget.