By Arlenys Tabare
According to a report published by Freddie Mac at the end of this week, The average benchmark 30-year mortgage rate fell from 6.4% to 6.53% from its highest level in nine months.
Although the decrease in the rate is a good sign and relief for potential buyers, the real estate market still does not have the stability of a few years ago.
Recently, the Department of Commerce Census Bureau reported that Single-family home construction in the United States fell 2.4% year-on-year, after the permits for Future construction of single-family homes will also decrease 2.6% in April.
The lack of inventory on the market has been one of the main reasons why home prices have skyrocketed to historic levels, and according to the Federal Housing Finance Agency (FHFA), Single-family property costs increased 1.7% year-on-year in the last 12 months.
So, currently, for many Americans, having their own home has become quite an odyssey; Although salaries increased, Redfin data they highlight that A family would need at least $116,780 to buy a home average in the United States.
In this regard, Nancy Vanden Houten, senior economist for the United States at Oxford Economics, commented that “buying a home in the United States remains unaffordable. We anticipate that this situation will continue for the next decade,” he said.
Another ingredient that has been disturbing the market currently is the high inflation and the great uncertainty in the markets regarding the development of the conflict in the Middle East, affecting the evolution of the yield on 10-year Treasury bonds, which are above 4% in response to geopolitical and economic changes.
Keep reading:
- US home prices rose in March
- Mortgage rates in the US increase to 6.51% in the last weeks of May
- US home construction fell sharply in April
- Are you thinking of moving? These are the 5 most affordable cities in the US to buy a home, according to Wallethub
