Many buyers in contract for new homes calculated monthly payments based on near-record-low mortgage rates
With the average 30-year mortgage rate rising to 5%, home ownership may now be out of reach for millions more Americans. WSJ’s Dion Rabouin explains the impact for potential buyers, sellers and the housing market. Illustration: Adele MorganPeople who agreed to buy homes under construction but haven’t yet closed are facing mortgage-interest rates that could be nearly double what they anticipated when they paid their deposits.
New-home buyers are confronting multiple obstacles this year, from surging mortgage rates to home construction that is taking longer than usual due to supply-chain and labor constraints.
We bought our home back in March, with a fixed rate a little over 3%. This was our luck, everything exploded interest wise after that.
Never heard of locking in their rate? Deserve what they get...
Rates at 2-3% are not a good thing. While yes it's sticker shock rates going up is the right thing ND if you look at last 30 years a normal thing.
Thank god my wife and I bought in 2018. This market is wild
This is why you don't get an ARM. Unless it's.a situation where it is like a 5/1 and you are very likely to pay to pay it off in with in the 5 years.