The dream of homeownership is getting further and further away for Americans.
For households, it is becoming increasingly difficult to acquire a property.
And this trend is likely to intensify.
With the health crisis, many households are looking for greenery.
But for the 120th consecutive month (10 years!), home prices continue to rise to reach an average
of $357,000.
This represents a 15% increase between February 2021 and February 2022.
Concerning new constructions, the market is facing an inflation of building materials and longer supply times.
Added to this is the rise in borrowing rates.
In January 2022, the US 30-year mortgage rate was 3.1%.
It is now above 4.5%.
This is the highest rate since December 2018.
Some even predict that it could exceed 5%.
If this were to happen, it would be a first since 2010.
The average 15-year fixed mortgage rate rose from 3.09% to 3.4% in just one week.
Thus, households that were previously eligible for a loan are now excluded.
Faced with this situation, real estate sales are decreasing while the number of unsold homes is increasing.