Rising Mortgage Rates Filtering Out Home Buyers
By S.E. Slack Frustrated with housing prices in your area? Make a move in the next year to take advantage of current affordability levels. Mortgage rates are rising, which is kicking some areas out of the reasonably priced range for potential home buyers.
Mortgage rates are hovering above 4 percent, which is a marked difference from the under 4 percent interest rates seen over the past two years, according to real estate firm Zillow.
“Overall, the U.S. is still below its historic average (of affordability),” says Sveja Gudell, director of economic research at Zillow.
Historically, homeowners have paid out about 20 percent of their income for housing. She points out that in the third quarter of 2013, new homeowners spent about 15 perce