Rising Rates Will Reduce Demand, but Won’t Eliminate Affordability ..Lawrenceville Real Estate News

Rising Rates Will Reduce Demand, but Won’t Eliminate Affordability .. Lawrenceville Real Estate News

The increase in mortgage rates coupled with rising home prices may dampen demand, but the recent upward movement in rates is not enough to make housing unaffordable to median income earners, according to Freddie Mac’s economic and housing outlook for June.

In fact, the GSE’s analysis showed mortgage rates would have to climb to nearly 7 percent before a median priced home is no longer affordable to median income earners in most parts of the country.

From May to early June, the 30-year fixed-rate mortgage spiked more than 40 basis points, ending just below 4 percent last week after staying at or under 3.5 percent for most of this year, according to the Freddie Mac.

 

Time to Sell or Buy ?

 

Lawrenceville GA

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