{"id":23541,"date":"2024-04-29T15:10:32","date_gmt":"2024-04-29T15:10:32","guid":{"rendered":"https:\/\/www.anthonydidonato.net\/wordpress\/?p=23541"},"modified":"2024-04-29T15:10:34","modified_gmt":"2024-04-29T15:10:34","slug":"rising-rates-constrain-buyers-budgets","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/rising-rates-constrain-buyers-budgets\/","title":{"rendered":"Rising Rates Constrain Buyers\u2019 Budgets"},"content":{"rendered":"\n

Home buyers this spring are facing a double whammy of rising home prices and mortgage rates. The 30-year fixed-rate mortgage rose to 4.72% this week, from 3.13% when compared to a year ago, Freddie Mac reports.<\/p>\n\n\n\n

Over the last three months, mortgage rates have risen by 1.5 percentage points, the fastest three-month rise since May 1994. Also, during the first two months of 2022, home prices have climbed by more than 15% compared to a year ago, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS\u00ae, writes on the association\u2019s blog.<\/p>\n\n\n\n

But housing demand remains high, Evangelou says. A severe housing shortage due to underbuilding has occurred over the last decade. \u201cHousing demand will remain strong due to favorable demographics and shifts in buyers\u2019 preferences as teleworking remains in place,\u201d Evangelou says.<\/p>\n\n\n\n

As such, home prices are expected to rise 5.1% in 2022, according to NAR\u2019s projections.<\/p>\n\n\n\n

Buyers are weathering the higher mortgage rates for now. Mortgage rates still remain low by historical standards. A more typical historical average is 8%, according to NAR.<\/p>\n\n\n\n

Freddie Mac reports the following national averages with mortgage rates for the week ending April 7:<\/p>\n\n\n\n