“Before the interest rate hikes, the payment on a $500,000 home was right around $1,300 to $1,400 a month. Now, the payment on that same home is around $2,000.”
. The latest increase dismayed prospective buyers Mike and Cheryl Taylor of Kansas City, Mo., who say the higher rates have put their dream of relocating to St. George out of reach.
Joe Langston, part-owner of Keller Williams Realty in St. George, explains real estate agents have a rule of thumb — when interest rates go up by one point, it negatively impacts people’s buying power by 10%. For the 40 % of buyers in this market who pay cash, interest rate hikes don’t have much impact.
“[Builders] are looking for ways to keep deals together, whether that is buying down interest rates or offering discounts or what have you,” Young said. Despite such advice, he believes there are some agents, especially the newer ones, who will opt out of the profession. Prices are beginning to stabilize or drop slightly — between 5% and 7%, by Holland’s reckoning — but housing experts say the decrease won’t be anything like what the market saw during the Great Recession of 2008. The market and the demand for homes are too strong.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amazon to buy vacuum maker iRobot for roughly $1.7B, adding to smart home appliance collectionIt's a move that will allow Amazon to scoop up another company to add to its collection of smart home appliances amid broader concerns about its market power.
Read more »
Candidates Running for Senate in 2022 Midterms Have Raised Nearly $1 BillionMore than $138 million came from candidates self-financing their own campaigns.
Read more »
Ohio State football coach Ryan Day and wife Nina’s $1 million gift funds mental health researchThe fund will be housed in OSU’s Department of Psychiatry and Behavioral Health at the Wexner Medical Center and College of Medicine. The work is specifically targeted to help young adults.
Read more »
2 metrics signal the $1.1T crypto market cap resistance will holdWeak Tether demand in Asia and mixed perpetual contract premiums signal a lack of confidence in a sustained crypto rally.
Read more »
Report: Biden Admin Poised to Give Ukraine $1 Billion Weapons PackageBiden's administration is prepared to send Ukraine a $1 billion weapons package as early as Monday, according to a Reuters report.
Read more »
Amazon to buy vacuum maker iRobot for roughly $1.7BThe company iRobot sells its products worldwide and is most famous for the circular-shaped Roomba vacuum.
Read more »