Home buyers feeling financially squeezed by higher interest rates are increasingly being steered by real estate agents and mortgage brokers to potentially riskier types of mortgages.
. Those dynamics could mean more people are out of a job and unable to refinance their homes at a lower rate or sell if needed.
Rates for a standard 30-year fixed-rate mortgage have doubled since the start of the year, meaning a monthly payment on a $400,000 mortgage now costs $865 more a month than it did in January. “Now, they are feeling like, 'Oh, God, higher interest rates are coming, we want to jump on it, we don’t want to miss it again,'" said Holeman."I’m feeling more and more of the urgency as opposed to people sitting on the sidelines to see what happens with prices.
"We shouldn't experience that same level of high volume, risky loans to people that are ultimately going to fall into default," said James Gaines, a research economist at the Texas Real Estate Research Center at Texas A&M University."Lenders and the regulators and the law have all conspired to hopefully not allow that kind of a situation to arise."
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mortgage rates soar as Federal Reserve raises ratesHigh inflation and expectations of recession add to home buyers' stress as mortgage rates go higher.
Read more »
Dothan’s most affordable starter homesLook through budget-friendly homes for first home buyers and flippers
Read more »
Wells Fargo 3Q revenue boosted by higher interest ratesWells Fargo easily beat Wall Street's third-quarter revenue forecasts as higher interest rates helped offset a steep decline in home lending.
Read more »
Have rising interest rates cost you money while waiting for your home to be built?Many people are getting hurt financially because mortgage rates rose sharply while they were waiting for their new homes to be built. And now it's hard or impossible to buy them. Share your story.
Read more »
This is how high interest rates might rise, and what could scare the Federal Reserve into a policy pivotEconomist and investing veteran Nick Sargen on official interest rates, bonds, the dollar and financial stability.
Read more »
Inflation remains persistently high at 8.2%—a 'tremendously unwelcome negative surprise,' says economistThe rate of inflation was higher than expected, and remains elevated at 8.2% year over year, with more interest rate hikes almost certain to follow.
Read more »