NORFOLK, Va. — Higher mortgage rates are making it more difficult for the housing market to pull out of its current slowdown.
Home sales are at the lowest rate in more than a decade, according to a new report from Virginia Realtors, and mortgage rates have hit their highest level since 2001. New data shows rates sit at an average of 7.2%.
Combine rising mortgage rates with an increase in home prices, and first-time home buyers are in a tough place.
Home construction is also lagging in Virginia, with workers building less than 40,000 homes per year. That’s compared to 50,000 homes per year in the 1980s and 1990s and a high of 60,000 homes per year leading up to the 2008 crash.
Despite the scary statistics, experts are advising buyers not to end their house hunting just yet.
Mortgage rates are sky-high right now, putting many potential home buyers in a panic. But there is some good news. Recent market uncertainty and rising mortgage rates could influence desperate sellers to meet you at your price.
Experts say home buyers should be flexible in this tough market. They say if your seller has already found a home, then you might want to close quickly.
There is always the option to refinance once rates go back down, but financial experts say it's important to weigh your budget and needs before making any big financial decisions.
WalletHub ranked 300 cities on the strength of their real estate markets using 17 criteria.