During an interview on “Mornings with Maria,” Credible.com personal finance expert Dan Roccato said housing affordability is at an all-time low and first-time homebuyers are feeling the effects of the low housing inventory coupled with record prices.
FIRST-TIME HOMEBUYERS ‘SQUEEZE THE MOST’ BETWEEN INFLATION AND HIGHER MORTGAGE RATES: REAL ESTATE EXPERT
Dan Roccato: TToday’s ARMs are different than they were 12 years ago, 14 years ago. But they’re still not appropriate for most buyers if you know you’re going to be in the house for a long time, Maria. With rates, as you said, slightly above 5%, they are still very low by historical standards. So if I’m going to be in that house for a while, I’m probably going to lock in as low a rate as I can today and not mess around and have that ARM on my mind, that adjustable rate mortgage on my mind, keep me up at night . So if you’re a shopper today, Maria, what this means is obviously affordability is at an all-time low, right? We have these record home prices now that rates are going up. First-time buyers in particular, Maria, are the ones on the sidelines saying, hey, we need some relief. We want to enter this market. No relief yet. Low inventory, fees are rising. First time homebuyers still take it with their chins today.
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