Borrowing costs climbing to highest level since 2008, sending shock waves through housing market
Mortgage rates have climbed to their highest level since 2008, pinching home buyers' budgets. The 30-year fixed-rate mortgage averaged 5.78% this week, way above its 2.93% average just one year ago, Freddie Mac reports. The Federal Reserve's decision Wednesday to raise its key benchmark rate by the highest amount in 28 years sent shock waves through financial markets, including adding further pressure on mortgage rates.
This means more buyers must readjust their home-shopping budgets, as the impact of higher rates translates to a 25% drop in house hunters' purchasing power since the beginning of the year. For example, a typical buyer could afford a $360,000 home with a $1,400 monthly mortgage payment at the beginning of the year. Now, with near-6% mortgage rates, a $1,400 monthly payment translates to a $270,000 home. Click here to continue reading.
Runaway inflation is making everything more expensive right now, including home renovation. A 2022 Houzz & Home Survey of 70,000 U.S. respondents has found that homeowners plan to spend a whopping $15,000 this year to rehab their houses. That's a four-year high and a 50% jump over the $10,000 shelled out over the previous three years.
This spending spike is most evident among the newest homebuyers who've purchased property in the past year. In fact, Houzz staff economist Marine Sargsyan notes that these recent homebuyers "spend significantly more on renovations than the national median."
How much more? Brace yourself: It's double the norm at nearly $30,000. Yet clearly, no matter how painful the price, homeowners are sucking it up for the sake of making their place more livable. In fact, this survey found that more than half of respondents (55%) are planning to renovate this year whatever the cost. Read the full story by clicking here.
Nevada REALTORS® is accepting nominations for 2022 REALTOR® of the Year Award (ROY), Distinguished REALTOR® Award (NDRA), Inspiring New Leader of Tomorrow Award (INLTA), and REALTOR® Active in Politics award (RAP). The deadline for the NDRA and RAP awards is Friday, Sept. 30. The ROY award deadline is August 15. Nominate a deserving REALTOR® today! You can view the nomination application for awards by clicking here. Then, please email Lilli Walker at NVR with your nominations.
REALTORS® completing C2EX can differentiate themselves in the community and optimize opportunities to best serve clients and position yourself as a leader in the community! The endorsement empowers REALTORS® to evaluate, enhance and showcase their highest levels of professionalism. It's not a course, class or designation-it's an Endorsement that REALTORS® can promote when serving clients and other REALTORS®.
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NVR has signed up for the NAR C2EX Challenge. C2EX is the endorsement aimed at helping REALTORS® improve their professionalism and be better at their jobs. This competition for state and local associations inspires REALTORS® to earn their C2EX Endorsement, to raise the level of professionalism in the industry, increase their marketability, and grow their business
Complete the Challenge and your name will be entered for a drawing of a $100 gift card for the month you finish it. Past winners include:
Giovanni Carmona, United Realty Group
Sara Sharkey, Homegate Realty of Nevada
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