(from Housingwire.com)
Remember “Marry the house, date the rate”? Yeah… that date turned into a full-blown situationship, and not the fun kind.
Many buyers were told rates would drop soon. Three years later, they’re still waiting… and now their monthly payments are higher thanks to rising property taxes, insurance, and expiring 2/1 buydowns.
Rate predictions missed the mark, and borrowers are stuck with unaffordable payments and little room for life outside their mortgage. Some are turning to ARMs, discount points, or debt consolidation just to stay afloat.
Mortgage pros admit the slogan may have overpromised. Turns out, “date the rate” only works when the rate actually wants to call you back.
With affordability at historic lows and few signs of relief, some homeowners may be forced to sell or fall behind.
Moral of the story? Buy the house only if you can afford the payment now, not because someone promised you a rate drop like it was a package from Amazon.
Read more here
Foreign Buyers Are Back, And They Brought Cash
(from Housingwire.com)
International homebuyers just dropped $56 billion on U.S. homes, a 33% jump from last year and the first real comeback since 2017.
They bought over 78,000 properties, with a record median price of $494K. Turns out, America’s still a hot ticket… especially if you’re paying in cash (which 47% of them did).
Top buyer countries:
LINK HERE
- China ($13.7B)
- Canada ($6.2B)
- Mexico, India, UK
Florida continues to be the crown jewel, accounting for 21% of all international purchases. That’s 15 straight years as the top state. Apparently, foreign buyers also love Disney and no state income tax.
NAR says elevated rates are still limiting sales overall, but cash-rich global buyers are filling the gap, and aiming high-end.
So yeah… while Americans are dating the rate, international buyers are skipping the mortgage altogether.
Read more here
Housing Market Hits the Brakes
(from Bloomberg.com)
The U.S. housing market is slowing to a crawl, with more than half of the top 100 markets now priced below their peak, according to new data from ICE.
Price growth nationally has dropped to just 1.3% year-over-year, the weakest pace in two years, and condo prices are actually down 1.4%. Even month-over-month, prices are basically flat.
Worst-hit?
Austin and San Francisco: median prices down $100K+ from peak
Florida: 9 of the 10 worst June drops happened here (sorry, Sunshine State).
High mortgage rates (still flirting with 7%) + affordability issues = a stalled-out market with serious buyer hesitation. Some areas in the South and West have more homes for sale, but inventory overall is still tight.
ICE says we’re at a “critical inflection point,” which sounds a lot like a polite way of saying, “We’re kinda screwed unless something changes.”
Read more here
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