{"id":3297,"date":"2023-10-02T08:02:30","date_gmt":"2023-10-02T12:02:30","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3297"},"modified":"2024-04-25T23:17:31","modified_gmt":"2024-04-26T03:17:31","slug":"frustrated-home-buyer-its-not-you-affordability-is-the-worst-its-been-in-a-century","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/frustrated-home-buyer-its-not-you-affordability-is-the-worst-its-been-in-a-century\/","title":{"rendered":"Frustrated Home Buyer? It\u2019s Not You. Affordability Is the Worst It\u2019s Been in a Century"},"content":{"rendered":"\n
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Given today\u2019s incomes, mortgage interest rates, and the prices on homes, we just had the least affordable month for U.S. housing in our century.<\/p>\n\n\n\n

September 2023 was the second record-breaking month this year. We might be headed for a third record before the year\u2019s over.  <\/p>\n\n\n\n

In fact, the last time it was this hard to buy a home was back in the early 1980s.<\/p>\n\n\n\n\n\n\n\n

Some say the market could get even harder to deal with.<\/h2>\n\n\n\n

Rates have continued climbing. They\u2019ve gone up to 7%. And then, they kept going. And the rate surge may not be over. Some recent reporting suggests mortgage rates could reach 8%. This comes after Jerome Powell, head of the U.S. central bank, has shown no intent to ease the federal interest rates.<\/p>\n\n\n\n

As we said at the beginning of this year, \u201cIt\u2019s pretty clear\u2026the Fed won\u2019t be cutting rates over the course of 2023.\u201d  The Mortgage Bankers Association thought back then that rates could drop well below 6% this year. That would be just practically impossible now.<\/p>\n\n\n\n

\u261b Why do mortgage rates rise? It doesn\u2019t happen by accident. See more about <\/strong><\/em>what Jerome Powell is doing with U.S. bank rates<\/em><\/strong><\/a>, and how it impacts mortgage affordability.<\/strong><\/em><\/p>\n\n\n\n

What an excruciating time this is for so many hopeful home buyers. Once again, rates have headed upward. That translates into heavier monthly payment burdens, and a lot more debt over the course of a 30-year loan. It means a higher hurdle to qualify for a home purchase and get a loan approval.<\/p>\n\n\n\n

Buying Activity Is Down 27% From Last Year.<\/h2>\n\n\n\n

Right now, buying activity is a startling 27% lower than it was at this time last year. Trying to stay accessible to prospective customers, sellers and builders alike are cutting their home prices.<\/p>\n\n\n\n

Even so, many people cannot afford a down payment on a home where they work. It\u2019s become impossible for many renters to save that much \u2014 while handling their obligations to pay increasing rents<\/a> in just about any major U.S. metropolitan area right now.<\/p>\n\n\n\n

\u261b\u00a0The average mortgage interest rates are not available to every applicant. Lenders issue their own rates according to the borrower\u2019s credit profile and personal money situation. Here are a number of ways a mortgage applicant may\u00a0<\/strong><\/em>raise a personal credit score<\/em><\/strong><\/a>.<\/strong><\/em><\/p>\n\n\n\n

Normally, the absence of buyers would mean inventory starts to bulge. And, indeed, the array of homes for sale is expanding \u2014 unusual for the autumn months. Yet listings are down from last year at this time.<\/p>\n\n\n\n

And no wonder! People do not want to sell when the mortgage rates out there today are significantly higher than most homeowners\u2019 current mortgage rates.<\/p>\n\n\n\n

Here Are Some Fast Facts About a Slow Market.<\/h2>\n\n\n\n
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Many people understandably wonder: Is everyone going through this, or is it just me? They\u2019ve been renting \u201cuntil the market cools\u201d but where\u2019s that light at the end of the tunnel? The statistics show exactly why this is happening \u2014 and that many people are in the same boat.<\/p>\n\n\n\n

Here are the standout stats that tell us what\u2019s going on out there:<\/p>\n\n\n\n