Loan Market Queenstown’s Post

The housing market, a once-frenzied engine of economic activity, has entered a peculiar phase. Homeowners, facing a stark contrast between their current ultra-low mortgage rates and the significantly higher rates offered today, are finding it financially advantageous to stay put. This dynamic, dubbed the “lock-in effect,” is impacting housing mobility and potentially shaping the market’s future trajectory, according to data compiled by The Kobeissi Letter on X.com, a leading source of commentary on global capital markets. https://lnkd.in/egRBGnVC #realestate #interestrates #housing #home

Is homeownership still within reach? Today’s housing market presents a unique paradox: while home prices and down payments seem high, historically speaking, they're actually pretty normal when adjusted for income. The real challenge? Mortgage payments. Since interest rates climbed from historic lows to around 7% currently, monthly mortgage payments have doubled, creating a significant affordability hurdle. Meanwhile, homeowners with locked-in low rates are staying put, limiting housing availability and keeping prices elevated. The questions on everyone’s mind are: What’s next? Will rates fall, or will prices adjust? The answers could shape the future of housing as an investment. Check out Aptus Capital Advisors latest article for more. https://lnkd.in/eV3VmZwq

How has the cost of homeownership changed over the past 35 years? Aptus Capital Advisors explores the affordability challenges in today’s housing market, how they compare to previous prices and interest rates, and what might come next. Don’t miss their latest blog for valuable insights!

Housing affordability remains a pressing issue as the housing recession persists despite the recent rate dip. The recent mortgage rate decrease has not significantly affected existing home sales, at least not immediately. Stay informed about the ongoing trends in the housing market. Check out more details here: https://flip.it/D7DQwo #housing #Realestate #homesales

The direct impact of higher mortgage rates on housing affordability has received much attention. We emphasize that housing affordability not only depends on mortgage rates but also on house prices, which have competing effects. For example, when interest rates increase, house prices tend to decline. We present decompositions of housing affordability, showing the relative importance of the two competing effects matters, and lower interest rates do not necessarily improve housing affordability.#interestrates #housingaffordability

Now is the time to make that purchase you have been putting off. Although there are currently more properties listed for sale in the market, traditionally, lower interest rates mean more buyers in the market resulting in increasing prices. #realestate #florida #luxuryproperties #whereluxurylives #aheadofthecurve #interestrates #johnrwood

As mortgage rates adjust down, remember that the consequence will be more buyers in the market and more competition for listings. If you’re contemplating buying a home in the next few months, let’s get together very soon to prepare and position you to win. https://lnkd.in/g3Y_CAeH

Mortgage rates look to fall to 6-month low even before the Fed rate cut (the first cut likely in September). This improves housing affordability especially if household income growth tops home price growth. https://lnkd.in/ePfSDPcH

Even if mortgage rates come down, today’s high home prices don’t seem sustainable. Take mortgage rates all the way down to 5%, versus September’s 7.2%, and the Atlanta Fed’s measure shows that housing costs are still nearly 25% beyond affordable. One way to make the numbers work at a 5% mortgage rate would, of course, be to boost household incomes by about 25%. The other would be to drop home prices by about 25%.

Affordability continues to fall, w/ HAI down for four straight months. Median sales price of a home rises for the fourth consecutive month to a record high. Mortgage rates up to a six-month-high 7.14%; mortgage payments up to a record high. Median family income rises to a record-high $102,364 (+5.3% y/y).#housingaffordability