Jeremy Schachter, Arizona-based branch manager at Fairway Independent Mortgage, said the highest interest rates in decades had “definitely” had an impact on qualifying borrowers as well as prompting a “slight pause” in purchase loans.
However, he added: “Normally, it does slow this time of year going into the holiday season. Many sellers don’t want their homes on the market when they have family in town. That being said… I am seeing sellers giving large concessions to buy down the rate (permanent and temporary buydown 2/1).”
Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors (NAR), focused on how higher interest rates were affecting minority groups.
She said: “Rising mortgage rates have increased the monthly mortgage payment by $1,000, and minority groups may be impacted more heavily. Although mortgage rates reached all-time lows in 2021, not everybody was able to benefit from these low rates.
“During 2019 and 2021, the White homeownership rate rose by nearly three percentage points, while the homeownership rate for Black Americans rose by two percentage points. With 7% mortgage rates, only 15% of Black households can currently afford to buy the typical home compared to 30% of White households. Thus, Black families may fall further behind in homeownership compared to their White counterparts.”
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