There are two reasons for the decline in affordability: Higher mortgage rates and home prices. The average rate on a typical 30-year mortgagereached 6.91% this week, up from 6.69% a week ago and the highest level since November, the Mortgage Bankers Association (MBA)saidWednesday. That means...
In Greater London the price of residential property rose on average by 17.3 per cent a year between 1982 and 1987. Over the same period the cost of borrowing to buy a house – as measured by the mortgage rate adjusted for tax relief – averaged a little less than 8.5 per cent. In othe...
The typical U.S. homebuyer made a $42,000 down payment in January, the lowest level in nearly two years, amid rising mortgage rates and low competition. At the same time, the share of homes bought in cash reached a nine-year high.
The problem with lowering interest rates is that this is how banks make money. Because the economy hasn’t been strong, there haven’t been high demands for loans for either housing, or corporate financing. As a result, banks are not doing well. If there’s a spate of mortgage failures,...
It would then be useful to see how this compares to the overall inflation rate since 2000: Source: BLS That is interesting. According to the CPI we are up 38 percent since 2000. So why are housing prices going up nearly twice the rate of the CPI? Thanks to our current financia...