According to data from Freddie Mac, 30-year mortgage rates have once again risen above 7%. As home prices continue to rise and inventory remains low, the potential for new homebuyers to afford a home dwindles.
Kinloch Partners Co-Founder and CEO Bruce McNeilage joins Yahoo Finance to break down what higher mortgage rates mean for homebuyers and the overall demand for homes.
McNeilage affirms his stance on why mortgage rates will increase: “I’m calling 8%. There is not enough supply out there. Supply and demand is working. The value and price of homes is just simply not going down. If anybody is waiting to get a house and can get a mortgage right now I would suggest they do so. If you can’t do it and can’t afford a house, there’s opportunities to rent brand-new ones out there for folks. ”
He continues later on discussing how the American dream has changed: “It used to be you bought your house, you saved for retirement, you got a gold watch when you retired and moved to Florida, right? Those days are really over. People want experiences now. They want to be mobile. So I think a lot of people like the lock-and-leave lifestyle where they can move and just pick up without being tied down to a house and having to sell it. And so a lot of people are finding buying a brand-new house is much tougher and renting it is easier.”
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The”American Dream” has been out of reach for years now.
Rents have gone down? Have you been to Miami? (Lies)
Someone doesn’t understand averages
Owning a house is a lousy investment
Been out of reach since the 1960s.
Buy when it makes sense, rent when it makes sense. It’s not rocket science.
Rent is not cheaper!
These talking head always blame house affordability on rates going up, but they never talk about house prices, not adjusting to reality
This is the end of first-time homeownership in the US.
When a STARTER HOME is 400k with 8% rates, monthly payment is $3,000 plus all time high property tax, PMI, HOA, and insurance? This will keep an entire generation from entering the middle class. Do we think that will bring stability or anarchy?
While congress is made up of 80 year old wealthy ppl passing tax cuts and SSI increases, they know nothing about what young people face in today’s economy and they’re actively hurting them. They cut the child tax credit and wonder why young people aren’t having kids when child care costs 1/3 of the average annual income? THIS IS BROKEN.
Kinloch is helping to make sure an entire generation is left out of the middle class. Rent only? Disgusting.
I was with you until you said you “think people are preferring the lock and leave lifestyle”. It’s not enjoyable moving every year.