Surging mortgage rates hitting first-time homebuyers ‘the hardest’: Real estate expert
30-year fixed mortgage jumps to 5.65%, highest rate since 2008
Anywhere Real Estate Inc. president and CEO Ryan Schneider is ‘pretty troubled’ home and rent prices won’t decrease soon.
While the real estate market shows signs of cooling down after the 30-year fixed mortgage rate hit its highest level since 2008, one expert issued a timely warning to first-time homebuyers:
"We've seen rates even above 6%, and it's really hitting the first-time homebuyer and the mass market the hardest," Anywhere Real Estate Inc. president and CEO Ryan Schneider told FOX Business’ Maria Bartiromo Wednesday.
On "Mornings with Maria," Schneider reacted to new data showing the 30-year fixed mortgage rate jumped 25 basis points to 5.65%, noting a "slowdown" in the market as a result of the hike.
"Prices have gone up both for homes for sale, and for homes for rent," the real estate expert noted. "So it's not clear to me that just waiting is the best answer here for anybody."
REAL ESTATE EXPERT: HOUSING MARKET ‘STILL STRONG,’ NOT AS MUCH OF A ‘FRENZY’ FOR BUYERS
According to Schneider, waiting for market prices to decrease poses a risk with limited supply.
Anywhere Real Estate Inc. president and CEO Ryan Schneider said he's "not sure how prices go down" in a supply-constrained market on "Mornings with Maria" Wednesday, June 15, 2022. (Getty Images)
"We're not sure how prices go down in this supply-constrained environment," he explained. "And so we have seen more people adjusting their expectations and their financing methods as opposed to just waiting for a decline. That doesn't seem to be in the cards lately."
Unable to predict when exactly home prices will start to cool off, the CEO pointed out consumers have shifted towards moving adjustable mortgage rates and changing housing preferences for affordability.
"I'm worried that they're not going to come down, in part because we're under built," Schneider said. "Fifteen years ago, when mortgage rates were this high before, we had 3 million extra homes, and now we've like 2 to 3 million less homes than we need."
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Anywhere Real Estate Inc. president and CEO Ryan Schneider argues ‘just waiting’ in the current market isn’t a good idea for anybody.
Anywhere Real Estate’s exec asserted that investors and brokerages are rooting for home builders to pick up the pace, and bring as much supply to the market as possible.
"But I'm pretty troubled and worried that the prices are not going to come down," Schneider admitted, "either on the rental or on the home purchase side."