CNN: Mortgage Rates Rise Again, Finishing the Year at 6.85%; Income Needed to Afford a Home Almost Doubled Since 2019

SIDNER Mortgage rates are ░░░░░░░░ up for the second ░░░░░░░░ in a row Even ░░░░░░░░ the Fed has cut ░░░░░░░░ rates in their last ░░░░░░░░ meetings the average 30 ░░░░░░░░ fixed mortgage rate is ░░░░░░░░ again nearing 7 higher ░░░░░░░░ the rates were at ░░░░░░░░ beginning of the year ░░░░░░░░ with us now is ░░░░░░░░ s Matt Egan bringing ░░░░░░░░ pain Thank you for ░░░░░░░░ here Matt But this ░░░░░░░░ annoying to so many ░░░░░░░░ who are trying to ░░░░░░░░ if they can afford ░░░░░░░░ buy And every time ░░░░░░░░ see like oh they ░░░░░░░░ lowered the interest rates ░░░░░░░░ you know the mortgage ░░░░░░░░ are going to come ░░░░░░░░ it s going to ░░░░░░░░ a little bit better ░░░░░░░░ is going on EGAN ░░░░░░░░ this is so frustrating ░░░░░░░░ homebuyers but also for ░░░░░░░░ who had been hoping ░░░░░░░░ refinance their mortgage rates ░░░░░░░░ as you mentioned the ░░░░░░░░ has slashed interest rates ░░░░░░░░ a full percentage point ░░░░░░░░ September and yet mortgage ░░░░░░░░ are going the other ░░░░░░░░ The latest average is ░░░░░░░░ 85 That is the ░░░░░░░░ since July nearly triple ░░░░░░░░ rates were at this ░░░░░░░░ in 2020 Of course ░░░░░░░░ was during Covid So ░░░░░░░░ is this happening Well ░░░░░░░░ it s really important ░░░░░░░░ stress that the Fed ░░░░░░░░ short term interest rates ░░░░░░░░ it s really the ░░░░░░░░ market that calls the ░░░░░░░░ for longer term rates ░░░░░░░░ stuff like a 30 ░░░░░░░░ mortgage And the bond ░░░░░░░░ has sent long term ░░░░░░░░ sharply higher since the ░░░░░░░░ of the summer for ░░░░░░░░ things right They re ░░░░░░░░ faster economic growth fatter ░░░░░░░░ deficits to potentially pay ░░░░░░░░ Trump tax cuts and ░░░░░░░░ potentially hotter inflation due ░░░░░░░░ the Trump agenda And ░░░░░░░░ there s hotter inflation ░░░░░░░░ would force the Fed ░░░░░░░░ keep rates higher for ░░░░░░░░ longer But no matter ░░░░░░░░ reason Sara unfortunately mortgage ░░░░░░░░ are ending 2024 on ░░░░░░░░ high note and there ░░░░░░░░ really no guarantee that ░░░░░░░░ s going to be ░░░░░░░░ improvement next year SIDNER ░░░░░░░░ right so the affordability ░░░░░░░░ crisis that we re ░░░░░░░░ with housing this isn ░░░░░░░░ helping I m assuming ░░░░░░░░ No No Sara This ░░░░░░░░ really the last thing ░░░░░░░░ people needed because it ░░░░░░░░ not just that borrowing ░░░░░░░░ are high it s ░░░░░░░░ home prices are high ░░░░░░░░ s just too many ░░░░░░░░ chasing too few homes ░░░░░░░░ so prices have nowhere ░░░░░░░░ go but up We ░░░░░░░░ seen this across the ░░░░░░░░ In the northeast home ░░░░░░░░ are up by 8 ░░░░░░░░ over year to almost ░░░░░░░░ 000 That s the ░░░░░░░░ In the west the ░░░░░░░░ home price is above ░░░░░░░░ 000 That s just ░░░░░░░░ median That means half ░░░░░░░░ them are well above ░░░░░░░░ price Of course this ░░░░░░░░ both ways right If ░░░░░░░░ already own your home ░░░░░░░░ re sitting pretty you ░░░░░░░░ smiling every time you ░░░░░░░░ checking the value of ░░░░░░░░ home on Zillow because ░░░░░░░░ s padding your net ░░░░░░░░ and it s giving ░░░░░░░░ some more financial flexibility ░░░░░░░░ to do a home ░░░░░░░░ loan or home equity ░░░░░░░░ of credit But we ░░░░░░░░ that so many people ░░░░░░░░ can t afford to ░░░░░░░░ right now Oxford Economics ░░░░░░░░ found that to buy ░░░░░░░░ home and to afford ░░░░░░░░ taxes and the cost ░░░░░░░░ insurance you need to ░░░░░░░░ 108 000 a year ░░░░░░░░ a household That is ░░░░░░░░ double where this income ░░░░░░░░ was supposed to be ░░░░░░░░ before Covid Back then ░░░░░░░░ needed to make 56 ░░░░░░░░ to afford to buy ░░░░░░░░ home Only 1 in ░░░░░░░░ households today Sara actually ░░░░░░░░ enough to afford to ░░░░░░░░ a home and this ░░░░░░░░ going to continue to ░░░░░░░░ a problem until not ░░░░░░░░ mortgage rates come down ░░░░░░░░ the supply of homes ░░░░░░░░ significantly SIDNER That is ░░░░░░░░ insane number that it ░░░░░░░░ doubled in that short ░░░░░░░░ of time Matt Egan ░░░░░░░░ you so much I ░░░░░░░░ for bringing us that ░░░░░░░░ for the great explanation ░░░░░░░░ really.”