re: Mortgages Jump to 7.16%, Highest Since 2001

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Found the realtor Can you explain this to me? It’s like a 5th grade math question The average person before the pandemic couldn’t come up with something like $300 dollars if needed. Inflation is up almost 10% and continues to rise, insurance rates are increasing, the cost of everything is increasing. Yet wages are stagnant. How are people who were already living on a tight budget going to make ends meet? Many people will have to downsize when they realize their mortgage is eating into their budget too much because they bought more than they could afford. It’s going to happen but it takes time. That will drive prices down, I don’t care what you claim the inventory is.

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What is going to happen is more people will live with their family (current highest levels since 70s) and more multi family construction.

We spent a year not building and never got caught up. Now single family construction is mainly only happening as it is sold (not spec).

The level of approved (not started) permits is high and will get put in play once prices and inflation come down.