Speaking with CNBC, Realtor.com’s Danielle Hale discussed the subject of increasing the monthly payment in conjunction with rate increases and how it would affect the housing and mortgage markets for the rest of the year. Hale noted that due to increasing mortgage rates and rising costs, a significant portion (about half) of the increase in the monthly payment since last year has already occurred.
Homes will still sell close to recent highs
It’s worth mentioning that the real estate expert added that so far it hasn’t impacted demand and the market is still likely to see home sales continuing close to recent highs. She indicated that approximately 40 million millennials are in that range to purchase today, regardless of whether “it’s the right time for the economy.” In total, 5.8 million homes were required to accommodate families in the preceding decade, but they were not constructed. That’s created a long-term shortage scenario, and since builders haven’t been able to bring those homes to market, it’s resulted in the frenzy that the housing market is currently experiencing. Finally, Hale emphasized that it’s a mix of what’s happening in both markets; with also high rental prices, which means that even while property prices are high, remaining and renting isn’t a viable choice for many prospective purchasers; as they’re looking at greater expenses there as well. Watch the video: Long-term housing shortage situation in 2022
