Source: Advisor Perspectives —
With mortgage rates more than doubling from ~3% to over 7% today the difference in cost between buying a home twelve months ago compared to today is very big. Not only are existing home prices up 8.4% year-over-year, but the same $400,000 mortgage costs ~$1,000 more per month than it did back then. The combination of higher mortgage rates and higher home prices has slowed the housing market significantly, with the number of existing home sales falling for ten consecutive months to the lowest number in eight years if we exclude the short-lived collapse in home sales in 2020.
