Top news articles for financial advisors and personal finance
Week of 9/26
This week's recap focuses on homes and mortgages covering high and volatile interest rates, decline in home prices after increases in home prices due to remote work, and things parents should consider before cosigning a mortgage with their kids.
Mortgage Rates March Towards 7%, Reaching Highest Level Since 2007 (Aarthi Swaminathan, MarketWatch)
This week, a 30-year fixed-rate mortgage averaged 6.7%. Last year, if a buyer had put down 20% down, $2500 in monthly payments could have gotten them a $758,000 home. With this week’s rates, they would only be able to get a $476,000 home. Read more about these high interest rates and their effects.
Home Buyers Face Wildest Mortgage Rate Roller Coaster In 30 Years (Tracey Longo, Financial Advisor Magazine)
According to Redfin, we are currently in the most volatile time for interest rates in 30 years. “A buyer who started searching in July and closed on a new home in September saw their potential mortgage rate fluctuate by roughly half a percentage point every four weeks.” Read more about how this volatility in rates has affected homebuyers.
Home Prices Suffer First Monthly Decline in Years (Nicole Friedman, The Wall Street Journal)
While home prices are still rising on a year over year basis, in July, we saw the first monthly decline in more than a decade. This decline is likely due to high interest rates that are slowing down the housing market. Read more about which areas were the hardest hit by this decline.
Remote Work Drove Over 60% of House-Price Surge, Fed Study Finds (Catarina Saraiva, Financial Advisor Magazine)
Housing prices rose 24% in two years from November 2019 to November 2022. Research by the Federal Reserve Bank of San Francisco found that an increase in remote work resulted in an increase in both house prices and rent prices. Read more about the other findings.
Helping Your Kids Qualify for a Mortgage? What to Know Before Cosigning on the Dotted Line (Robyn A. Friedman, The Wall Street Journal)
With housing affordability at an all time low, many young individuals, especially those with less than ideal credit, are having their parents cosign the mortgage with them. However, cosigning may not be the best situation for parents. Read more about what parents should consider before cosigning with their kids.
