During an interview on “Mornings with Maria” Credible.com personal finance expert Dan Roccato said that home affordability is at an all-time low, and first-time homebuyers are feeling the effects of the low home inventory coupled with record-high prices.
FIRST-TIME HOMEBUYERS ‘GETTING SQUEEZED THE MOST’ BETWEEN INFLATION, HIGHER MORTGAGE RATES: REAL ESTATE EXPERT
AND ROCCATO: Today’s ARMs are different than they were 12 years ago, 14 years ago. But they’re still not appropriate for most buyers if you know you’re going to be in that house for a long time, Maria. With rates, as you said, slightly over 5%, they’re still very low by historical standards. So if I’m going to be in that house for a while, I’m probably going to lock in the low rate that I can today and not mess around and have that ARM on my mind, that adjustable-rate mortgage on my mind , keep me awake at night. So if you’re a buyer today, Maria, what this means is obviously affordability is at an all-time low, right? We’ve got these record-high home prices now we have rates going up. First time buyers in particular, Maria, they’re the ones that are on the sidelines saying, hey, we need some relief. We want to get into this market. No relief just yet. Low inventory, rates are ticking up. The first time homebuyers are still taking it on the chin today.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
WATCH THE FULL INTERVIEW HERE: