The demand for homebuying was extraordinarily high over the summer and the ensuing price hikes were unlike anything seen in decades. According to CoreLogic, the imbalance between supply and demand in the U.S. housing market drove prices 18 percent higher in September than the same month in 2020.
While this is good news for sellers and the economy overall, a robust housing market can also prevent first-time potential buyers from making a move. Millennials are one of the fastest growing groups of homebuyers in the U.S. but face challenges as they often seek to move to large cities like Seattle, San Jose and Austin where home prices are higher than ever.
A recent survey of consumers from CoreLogic found that 47.9 percent of Millennials felt they could not afford to purchase a home in their preferred area. Continued low mortgage rates, however, continue to be a bright spot for first-time buyers.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0924 and your questions may be featured in an upcoming article.
