Buying Costs Mount This Spring

By
Real Estate Agent with Berkshire Hathaway HomeServices Amabassador Real Estate #20090176 & #20090177
This information is brought to you by

Shawn & Angela Miller, REALTORS®

Berkshire Hathaway HomeServices Ambassador Real Estate - Lincoln and Omaha Nebraska

Serving Lincoln, Omaha, and surrounding communities

 
 
 
 
 

Are you looking to purchase this spring? The combination of increasing prices and rates is making the price tag steeper.

The average monthly mortgage payment has risen by $168, or 12.7 percent, year-over-year, according to an analysis by realtor.com®. The average monthly mortgage is now $1,486, up from $1,318 in February of last year.

Concurrently, 30-year interest rates have gone up meteorically, and list prices are up 10 percent (on realtor.com); however, climbing prices are the primary reason. Across the 20 largest markets, analysts attribute 64 percent of the escalating expense to prices rising.

“Buyers can expect to see more of their paychecks go to their mortgage payments this year,” says Danielle Hale, chief economist for realtor.com®. “Tight inventory has limited options for buyers and sent home prices soaring in many markets. Now, homebuyers will also have to factor in higher mortgage rates. This spring’s homebuyers will have to decide: Do they give up some desired home features to get into that lower price range, or do they dig deeper into their wallets?”

Buyers are burdened most out west. According to the analysis, the average monthly mortgage payment is rising $449 in the Seattle metro, $378 in San Francisco and $363 in Los Angeles. Breaking down the 20 largest markets:

Realtor_Mortgage

“Despite mortgage rates still being historically low, the combination of higher prices and rising rates will further challenge trade-up and first-time buyers, usually millennials or Gen Xers,” Hale says. “They will have to borrow more money at a higher rate to close on a home in this market.”


Original content written by Suzanne De Vita and is RISMedia’s online news editor.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Tags:
omaha real estate
lincoln real estate
omaha real estate agent
omaha home values
lincoln real estate agent
lincoln home values

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
273,138
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

We expect some more upward pressure in rates in the coming months, so you are right - it's time to get off the fence if you are thinking about buying another home!

Mar 21, 2018 08:46 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
69,338

Shawn and Angela Miller

Lincoln and Omaha, NE REALTORS®
Ask me a question
*
*
*
*
Spam prevention