Home Prices Are Increasing, But Mortgages Are Still Cheap

The median existing home price climbed to $252,800 in May, according to the National Association of Realtors. At this point, home prices have been rising every month for more than five years. While this is good news for homesellers, buyers are finding it increasingly difficult to find homes that they can afford.

Cities across the United States are experiencing major housing shortages, which means that buyers are competing for homes with bidding wars and offers that are well above asking prices.

“Prices are moving up and properties are moving quickly,” said Danielle Hale, NAR’s managing director of housing research.

In addition, builders are not building enough homes to keep up with the growing demand. Homeowners are also reluctant to list their properties because they worry that they won’t be able to find or afford a new home. Rents are also increasing, which makes it harder for potential buyers to save up for a home in the first place.

However, there is one bright spot for buyers: mortgage rates. Even though the Fed has begun to raise interest rates, mortgages have remained below 4 percent recently. For the third week of June, the average rate of a 30-year fixed mortgage ticked down to 3.90 percent.

[return to top]

In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millennials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages

The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 The Insurance 411. Tel. 877-762-7877. theinsurance411.com