A recent study shows that the cost of purchasing a new single-family home in the United States hit a new record, per a report by Fox Business:
“The cost of buying a new house just hit a fresh record, even as mortgage rates dipped to the lowest level in three months, according to a new report.
“Findings from Redfin show the median U.S. home sale price soared to $394,000 during the four weeks ended June 9 – a 4.4% increase from a year earlier.
“The monthly mortgage payment at that price, when accounting for the 6.99% median interest rate for a 30-year mortgage, is now $2,829. That is roughly $30 shy of April’s record.
“Housing costs are unlikely to spiral any higher thanks to a recent drop in mortgage rates, which fell after the government reported that inflation cooled in May. However, they may not go much lower, either.
“‘The latest inflation report is good for homebuyers because it has already sent mortgage rates down, though this week’s Fed meeting will temper mortgage-rate declines,’ said Chen Zhao, economic research lead at Redfin. ‘But on the other side of the coin, if lower mortgage rates bring back more demand than supply, that could erase the possibility that home-price growth softens, and push prices up even further.’
“There are a number of driving forces behind the affordability crisis.
“Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials.”
To read the entire article by Fox Business, please click HERE.