Mortgage Rates Remain Low
According to the National Association of Realtors, the median existing home price climbed to $252,800 in May, the exceeding the peak hit in June 2016 of $247,600.
Home prices have been rising every month for more than five years.
Cities across the U.S. are facing major housing shortages, which means buyers have to compete for homes with bidding wars and offers well above asking price.
“Prices are moving up and properties are moving quickly,” said Danielle Hale, NAR’s managing director of housing research.
Builders aren’t building enough houses to keep up with demand and current homeowners are hesitant to list their properties because they’re worried they won’t be able to buy a new home.
But there has been one saving grace for buyers: mortgage rates, says CNN Money.
Even though the Federal Reserve has begun raising interest rates, mortgages have been hovering below 4% recently. Last week, the average rate of a 30-year fixed mortgage ticked down to 3.90%.
With the Fed raising rates, interest rates are expected to gradually rise over time, but should stay pretty low for the foreseeable future.
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