During an interview on “Mornings with Maria,” Credible.com personal finance expert Dan Roccato said home affordability is at an all-time low and first-time home buyers are feeling the effects of low home inventory associated with record prices.
FIRST-TIME HOME BUYERS ARE ‘THE NASTEST HURRY’ BETWEEN INFLATION AND HIGHER MORTGAGE RATES: REAL ESTATE EXPERT
DAN ROCCATO: JMRAs today are different from what they were 12, 14 years ago. But they still aren’t suitable for most buyers if you know you’re going to be in this house for a long time, Maria. With rates, as you said, slightly above 5%, they are still very low by historical standards. So if I’m going to stay in this house for a while I’m probably going to lock in whatever low rate I can today and not mess around and have this ARM on my mind, this adjustable rate mortgage on my mind, keep me awake the night. So if you’re a buyer today, Maria, that obviously means affordability is at an all-time low, right? We have these record house prices now that rates are rising. First time buyers in particular, Maria, are the ones on the sidelines saying, hey, we need some relief. We want to enter this market. No relief yet. Low inventory, prices go up. First-time homebuyers still take it on the chin today.
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