Surging mortgage rates continue to raise eyebrows across the economy, posing yet another hurdle for would-be homebuyers already feeling pinched by a pricey market.
Median home prices surged 7% in the first quarter, a 38% increase over the same period in 2020, according to Marcus & Millichap. And according to Moody's data, the lowest tier of the housing market appreciated by 17.2% in the past year alone. Meanwhile, mortgage rates are now more than 2.5% higher than recent lows.
"I think it's fair to say that the increase in mortgage rates, combined with the increase in prices that we've seen, are making homes much more expensive for buyers in the market today," Realtor.com chief economist Danielle Hale recently told CNBC, adding that the cost of buying a median-priced home in the US is up 65% year-over-year.
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