Current mortgage rates are not decreasing as quickly as anticipated, leading many buyers to strain their budgets, potentially ending up unable to manage their mortgage payments. The affordability crisis extends beyond mortgages, with median down payments reaching nearly the average annual wage. In geographies particularly affected by rising property insurance and taxes, buyers are adjusting by considering multigenerational living arrangements and accessory dwelling units (ADUs) for affordable housing. These changes indicate a significant shift in buyer behavior in response to mounting financial pressures.
Rates aren't coming down as quickly as originally thought; people are overextending themselves in the hope rates will drop soon, using features like temporary buydowns but not being able to truly afford the full note rate payment.
I believe the concerns for the market at this point are dramatically related to geographics. The buyers have to understand the marketplace on a micro level more than ever.
Multi-generational homes have become a growing trend as families seek ways to make homeownership more affordable, said Judy L. Jones, a Colorado-based LO for Lower-backed Universal Lending Home Loans.
ADU is a big requirement now. Every borrower is looking for a property with a basement to rent, said Andreia Faustino, a Utah-based LO with American Pacific Mortgage.
#mortgage-rates #affordability-crisis #housing-market #multigenerational-living #accessory-dwelling-units
Collection
[
|
...
]