Source: Forbes —
There is no shortage of pessimism in the housing market today. U.S. house prices have declined since June. However, prices are generally up year-on-year, and the market is seasonal with prices and activity typically higher in the summer and lower in winter.
Affordability is at very low levels, especially on the West Coast. We haven’t seen major house price declines yet, but there’s a fear it could be coming.
Housing Affordability
There are reasons to worry about the U.S. housing market. The dramatic spike in U.S. interest rates in 2022 is making housing affordability worse. Last year it was possible to obtain a 30-year mortgage for around 3%, now the same mortgage costs almost 7%. We’re seeing the highest mortgage rates in more than a decade.
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As an appraiser we have had 10-15 orders in house since 2010 every day – two weeks ago our orders dropped to zero in house and now they dribble in at 2-3 per week with what the future looks like-a lot of aBank owned propertys,
Is 2 to 1 pay down a good idea, were the interest rate is 3.99% for the first year, and gradually adjust to 5.9% or more by the home builder