Mortgage Payments Up, Housing Demand Still Strong
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2201 SW Monterrey Lane Port St. Lucie. Call us to see this listing today!

In Housing News, rising interest rates, coupled with rising home prices, are making it more expensive to pay for a home.  In October, 30-year mortgage rates climbed to over 5 % for the first time in years.

As s reported in the MReport, Zillow recently analyzed how much more homeowners are paying. They found that across the country, homeowners are paying more for their mortgages.

“Mortgage payments for the average home have risen 15.4 percent in comparison to August 2017. The median home value has also risen—but only by 6.5 percent in the same period. If someone is planning to buy a median-priced home today, they can expect their monthly mortgage payments will be $118 higher than a year ago, or $1,416 per annum. This increase in the average mortgage payment is indicative not only of increased home values but also of higher interest rates for those in the market to buy.”

More Housing News

In other housing news, sales of new homes, nationwide, in September were down 5.5% over a year. But many experts think that Hurricane Florence skewed those numbers.

In St. Lucie County, sales of single-family homes in September were up 10% while the median sales price was up 12.2% over a year ago.

What will Keep Housing Demand Up?

The Economy—Unemployment is at a 50-year low. Despite the fact that their money won’t go as far, millennials have jobs and want to buy homes.

Mortgage Rates Won’t Go Much Higher in 2019—According to a recent article on Bankrate.com , analysts predict that mortgage rates won’t go higher that 5.5% in 2019. So the worst of the pain from rising rates is behind us.

Home Prices are predicted to Grow at a Much Slower Rate—Homes are increasing at slower rates now than a year ago. That trend will continue into next years. Homeowners will see appreciation, just not as much. Which is a good thing for buyers trying to enter the market.

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