Mortgage Rates Start Falling After Hitting 20-Year High, But Housing Affordability Remains Near Historic Lows
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Mortgage rates reached over a 2-decade high last month but started dipping after the Fed's interest rate hike pause, leading to a small uptick in loan applications.
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Experts say rates won't see dramatic declines soon, so anxious buyers have little reason to wait as prices are unlikely to fall.
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Soaring rates, low inventory, and high costs have led to a significant housing affordability decline, changing homebuyer demographics and geography.
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Sellers are also struggling, reluctant to sell their low rate mortgages, further limiting inventory and driving competition.
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Prices haven't fallen nationwide yet, though they may soon, keeping housing affordability at a 40-year low due to high rates, prices, and limited supply.