After last week’s surge, the 30-year fixed mortgage rate rose slightly to 5.30% from 5.27% the previous week. Unyielding inflation and the Fed’s tightening policy seem to be the main drivers of today’s mortgage rates.
The conversion of vacant office space for residential use faces hurdles from rising rental and construction costs.
Mortgage rates surged to 5% for the first time in over a decade (since February 2011). Elevated inflation continues to push up mortgage rates.
With inflation running this high, the average consumer is spending $500 more compared to one year ago, or $6,132 annually.
At the national level, housing affordability fell in February compared to the previous month according to NAR’s Housing Affordability Index.
High-income homeowners accounted for 71% of increase in value of owner-occupied housing from 2010 through 2020.
Apartment asking rents are rising at a double-digit pace in 35% of 390 metro areas, according to NAR’s analysis of asking rent data in those areas.
Nationally, the existing single-family median home price rose 14.6% year-over-year to $361,700, with 67% of the markets showing double-digit home price appreciation.
At the national level, housing affordability fell in December 2021 compared to the previous month according to NAR’s Housing Affordability Index. Compared to the prior month, the monthly mortgage payment increased by 0.5% while the median family income rose modestly by 0.3%.
Apartment demand is still outpacing supply across all classes of apartments and with demand likely to rise, rental prices are also likely to rise.
