Mortgage rates are nearing 7%. One house hunter says he's "despondent."
"It seems like we're trying to climb out of a hole somebody else is digging," said one frustrated house hunter as homeownership costs rise.
Mortgage rates are nearing the 7% mark, causing frustration for one couple trying to buy a home. Thomas Louis and his wife have made 15 offers in the past three years, but remain unsuccessful. With rates at 6.95% on Thursday, up from 6.76% the previous week, their search has become more challenging. The rise in rates, attributed to inflation and geopolitical tensions, is making it harder for buyers and sellers alike.
Matt Schulz, an analyst at LendingTree, noted that rising mortgage rates are making it harder for people to afford homes in an already challenging market. Bob Broeksmit, president of the Mortgage Bankers Association, echoed this sentiment, stating that mortgage rates are weighing on affordability and dampening borrower demand. Despite the high prices and low supply, some buyers are outbidding others with cash offers, adding to the competition.
Thomas and his wife, who earn around $250,000 combined, have a price range of roughly $500,000 but continue to search for a home in New Jersey, considering leaving the state if prices remain prohibitive.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
