Did you know about the current hike in mortgage rates? Yes, it is quite a disappointment but don’t you worry. We still get homes for sale in Mississippi listed. According to several realtors and experts in the real estate industry, the hike might take a toll in the coming weeks! Yikes!
Comparative Study of April 202o with 2019 – Rise in Mortgage Rates
In April of this year 2022, a 12% decline was noticed in comparison with the previous year’s same month, April. This decline has been going on and about since 2019. However, there is some good news too – there are fair chances of growth in the near future.
The pace of sales is kind of slower than before because of the obvious reasons – increase in mortgage charges. Despite the availability of the houses, there is a slower purchase percentage. You would ask why it is so. Well, it is because the houses which were expensive in the past few months are even pricier now.
Effect of High Mortgage in Listings
This April, there was a decline of 0.9% in listings as well. This however is compared to last year’s April. Sadly, the active rate of a listing is also going down day by day. It is 67% less than the days before pandemics hit us. On the other hand, the supply of houses is mostly from middle-sized homes for families. It is again because people are reluctant to stay in a house on contracts.
Two Factors – High Mortgage & Expensive Houses
High rates of mortgages along with the shift of prices towards the higher side have indeed given sidelined competition. Prices of homes have considerably increased to 34% during and after pandemics. The average mortgage now in April 2022 is $400,000 monthly. That is not it! A 20% down payment is also required.
Last Words: Is There a Hope of Revival in 2022?
All these factors are constituting towards a lesser number of potential buyers. Also, a considerable change in bidding has been noticed. Almost every American says that 2020 was the worst time to purchase a property. Now in 2022, things are getting better and we have hopes of seeing a rise in purchases. Also, we are sure that mortgage rates will again get less and will give reasons to buy a new home easily.