The real estate market is fickle and always changing. It’s hard for borrowers to narrow down the perfect time to buy a new home and take the plunge. From year to year, the market goes through ups and downs. As it turns out, today’s mortgage rates of the real estate market are rising and show no sign of slowing down. New data released from Realtor.com, which collected mortgage rates from September 2017 and September 2018, has shown the month to month rise in mortgages across the country.
Reported by Realtor.com, since last year the average U.S. monthly mortgage payment has increased 15.8%, which is about $223 per month. The increase was shown from a month to month rate. Across the country, each market was different but still showed a rise in their mortgage rates. Larger cities such as New York City and Seattle took the hardest hit in monthly mortgages. New York City showed $545 increase in their monthly mortgages and Seattle followed with $533 increase. Some cities had smaller increases in monthly mortgage that were not as significant. For example, the Tampa-St. Petersburg area only saw a $94 increase in monthly payments.
With no signs of mortgage rates slowing down, many wonder the impact this will have on borrowers. Those with lower monthly income and lower down payments will be most impacted by the obvious increase. As the prices rise, more people are keeping an eye on the real estate market. It’s important to realize that borrowers that are close to qualifying of qualifying will now need additional annual income to secure a mortgage. Some people will now have to settle for smaller homes and settle for what is more affordable. Properties that were once available to them are now far out of their reach.
Due to the increase in mortgage rates, many people have stepped back from buying homes. Most experts would advise against this and encourage everyone looking for a new home to continue their search. Borrowers should understand that the rates will continue to increase and are advised to start looking now. Although the mortgage rates continue to rise, it’s important to take advantage of the rates today because they could be even higher next year.