January 1st, 2019 9:42 AM by Jackie A. Graves, President
FREEHomePurchaseAnalysis Today'sMortgageRates FREEHomeRefinanceAnalysis
Rising mortgage rates
are taking a bite out of consumers' homebuying budgets.
this year in home finance costs have already added about 15 percent to typical
mortgage costs may mean buyers have to settle for a less expensive house to
qualify for funding.
mortgage rates tick up to 6 percent next year as expected, that will mean a
typical U.S. buyer will have $52,800 less to spend on a home, according to a
new report from Zillow.
In the D-FW
area, a typical homebuyer will have to trim his housing budget by more than
$58,000, according to the new report.
means many home shoppers will need to reset their price points and make more
concessions about where they decide to live, how much space they need and how
long their commutes will be," Zillow analysts said. "Already
rising mortgage payments eclipse home-value gains, a phenomenon that can both
encourage homeowners to stay put to hold on to low mortgage rates and
discourage would-be first-time homebuyers."
fixed-rate mortgages averaged just under 5 percent in November. That's about a
percentage point higher than a year ago.
The rise in
mortgage costs this year has contributed to a slowdown both in home sales
and smaller price increases in North Texas and other U.S. markets.
it's certainly important to keep track of home values and interest rates and
plan your budget accordingly, buyers shouldn't base their decisions on those
moving targets," Zillow senior economist Aaron Terrazas said in a
statement. "It's also important to remember that rates on a typical
mortgage remain very low by historic standards — especially given the type of
strong economic growth we've been experiencing."
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