Thirty-year mortgages are now above 7% — their highest level in eight months. NBC 7’s Shandel Menezes spoke to a San Diego realtor on what it means for homebuyers.
An Allied Gardens street was quiet ahead of an open house for a home listed for $999,000. Realtors didn’t expect there to be a long line of people out the door waiting to see it because, for many people, the 7.04% mortgage rate milestone pushed the home out of reach.
“I've heard it said that for every half of a percent that the interest rate goes up, there's about 500,000 buyers that no longer can afford to buy the home,” said Chris Anderson, who leads the San Diego Association of Realtors.
She joined hundreds of other industry professionals in Mission Valley for a progress report on the housing market. Long story short: it’s not looking good.
Inflation, a housing crisis and natural disasters incinerating the housing we do have is why homeownership seems like a fleeting dream for so many people. Then, lowball offerors and price gougers add insult to injury by trying to capitalize.
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“Turn them in,” Anderson said. “That’s how we remedy that problem.”
She said a common mistake people make after they decide to buy is waiting too long so they can save up more money to put down.
“If I qualified to buy, I would buy, even if it was for the short term because you cannot save enough money in the rate that they are appreciating," she said.
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The example she gave was waiting even one more year to save. If the property appreciates 10% over that year, most people can’t save that much that quickly. By the time you’ve saved the money you initially thought you needed, you turn around and the goal post is out of reach again.
Anderson said while the market is so volatile, it’s best make a move as soon as it makes sense for you. And if you’re waiting for a break, she suggests getting comfortable. We’ve got a long way to go.
“Until we can get the housing to be built, we're still going to have this problem,” she said. “So, I don't see it coming anytime soon … Any relief soon.”
