Written by Jasir Jawaid
Home ownership is everyone's dream. But in the current economic conditions, it will remain just that for several people — a dream. According to Zillow, home affordability has hit a 15-year low amid soaring home prices and mortgage rates. Data from the National Association of Realtors paints a similar same picture. According to Zillow, your mortgage rates as of early June meant you'd have to shell out 51% more in mortgage payments than last year. Economic conditions have made owning a home neither easy nor affordable.
People looking to buy a home in the current hot market are now looking elsewhere to deploy that money. This pullback in demand, Zillow says, has decelerated price growth and resulted in a slowdown in sales. A typical home in the U.S. is now worth $349,816, that's $60,000 more than a year earlier, according to Zillow. Mortgage rates are now dropping as the Fed takes a hawkish stance on interest rates, raising fears of a potential recession.
Even if you do end up owning a home, insurance costs and property taxes may force you to second-guess your decision. On top of that, the Fed's currently on a path to raise interest rates even more, which would add a burden in the form of higher payments. According to NAR, the median sale price of a home has topped $400,000, a record high, amid faltering sales.
This article was published on JoyWallet and can be read here in full.