30-Year Mortgage Interest Rates on the Rise
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August 18, 2023When my husband and I bought our home in 2019, we assumed it would be a home we’d live in for around 10 years or so.
But these new mortgage rates say otherwise. #HelloForeverHome
According to Freddie Mac, mortgage rates for a 30-year mortgage have officially reached their highest rate in over 20 years.
“30-year fixed-rate mortgage averaged 7.09 percent as of August 17, 2023, up from last week when it averaged 6.96 percent. A year ago at this time, the 30-year FRM averaged 5.13 percent.
15-year fixed-rate mortgage averaged 6.46 percent, up from last week when it averaged 6.34 percent. A year ago at this time, the 15-year FRM averaged 4.55 percent.”
And it’s not just interest rates that are at their highest—home prices are also absolutely in-freaking-sane, too.
The National Association of Realtors writes:
“At $410,200, the median existing-home sales price for June was the second-highest price ever recorded – since January 1999 when NAR began tracking the data – and 0.9% less than the all-time high from one year ago of $413,800. It was the third time the monthly median sales price eclipsed $400,000, joining June 2022 and May 2022 ($408,600).”
I have no idea how young adults looking to buy their first homes are going to manage this one. My guess is we are going to see a heck of a lot of renters and foreclosures in the future. And it’s a darn shame.
Goodbye, American dream. Hello, cardboard box.
2 Comments
The way young people can do it is to look for older homes and fix them up. They may not be in the most desirable neighborhoods, but even those can be made better as young families move in. Just takes imagination and delayed gratification.
My wife and I own about 12 buildings. 8 – 11 SFH and two commercial buildings. We paid cash for really cheap houses and fixed them up ourselves. So, now when the adult kids or so to be grandkids want money we put them to work. Kind of a win/win situation for me and keeps the kids busy on the weekends instead of them out partying.
I hope things don’t get as bad as the Jimmy Carter days of 17% mortgages, but it looks like we’re well on our way. Many on Wall Street are predicting another recession (a big one) within the next twelve months. That kind of thing really makes it hard for people to ignore their pocket books and vote for Biden-omics. Watch for Titanic-scale cheating by Democrats during the 2024 presidential election. They really can’t afford to lose this one coming up.