The Fed's Inflation-Fighting Tactic Was Effective In Cooling The Housing Market. What now? - USA TODAY
June 05, 2023With median home prices for both existing and new homes above $380,000, and elevated mortgage rates, home buyers are in a tough spot, says Jeff Taylor, founder, Mphasis Digital Risk.
"With 5% down and 7% rates and $600 in non-housing debt, borrowers qualify for these purchase prices if they make above $100,000," Taylor told USA TODAY. "We've seen that buyers are more likely to act when income required to qualify drops below $100k. We need rates in the lower-6% range for this to happen." Taylor expects rates to drop and for inflation to wane this fall.
"So homebuyers shouldn't be discouraged," he says. "Instead, they should get pre-approved by lenders now, and those pre-approvals will only look more attractive as rates drop."
