Mortgage rates spike as home prices hit new record
The national home price average crossed $400,000 for the first time
Real estate expert explains why inflation, higher mortgage rates translates to soaring apartment rental prices
Macro Trends Advisors LLC founding partner Mitch Roschelle argues higher mortgage rates make it more difficult to buy homes, leaving more people turning to the rental market while supply is limited.
Mortgage rates resumed their upward climb along with home prices.
Rates for a 30-year fixed mortgage rose to 5.22% from 4.99%, according to Freddie Mac's weekly data.
"Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market," said Sam Khater, Freddie Mac’s chief economist. "Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer."
(Freddie Mac)
Separately, the national median single-family existing-home price rose 14.2% annually to $413,500, surpassing $400,000 for the first time, according to the National Association of Realtors.
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| TOL | TOLL BROTHERS INC. | 165.17 | +0.42 | +0.25% |
| LEN | LENNAR CORP. | 174.39 | +0.29 | +0.17% |
| MTG | MGIC INVESTMENT CORP. | 26.26 | +0.15 | +0.57% |
| DHI | D.R. HORTON INC. | 168.28 | -0.62 | -0.37% |
Eighty percent of U.S. metro markets saw double-digit annual price gains.
"Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers," said NAR chief economist Lawrence Yun in the report.