As inflation continues to plague the nation, it’s not impacting all of the housing markets and increasing mortgage and rental rates.
People who have purchased homes are locking their mortgage rates at a higher rate this month.
This is in preparation for an expected increase in mortgage rates this year.
Since Dec., rate locks have increased 10% according to AS.
There has also been an increase for loans being taken out to afford payments by 20%.
Inflation isn’t expected to stop anytime soon and the housing market will continue to increase.
What happened to make a mortgage so expensive?
People saved money throughout the pandemic and home purchasing rates went up.
As the rates went up it drove up the price value of all homes in the market.
The median price for a family home went up to $361,700.
The 30 year fixed rate mortgage is now 3.92% and rose by almost 1% in just 4 months.
This is happening under fears of the Federal Reserve increasing interest rates this year.
March will have the first interest hike.
Why is rent increasing?
Rent has risen as the cost of living goes up.
On top of that, landlords everywhere are acting greedy and these things are not helping inflation.
Wages are being adjusted throughout the country to try to keep up with inflation and affording to live.
Rental vacancies have fallen to 5.6% which is the lowest they’ve been since 1984.
This gives landlords the room to increase rental rates.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].