Watch for “overvalued” housing markets as house price growth begins to slow, says CoreLogic
Last week, the average fixed-rate mortgage for 30 years reached 4.67% – up from 3.11% in December. This is a bigger issue than it may seem at first. If a borrower took out a $ 400,000 mortgage at 3.11%, he would have owed $ 1,710 a month during the 30-year loan. At a 4.67% mortgage rate, this monthly payment rises to $ 2,067.
Not only are mortgage rates higher for homebuyers, it also means that some borrowers – who have to meet a strict debt-to-income ratio of lenders – will lose their mortgage eligibility.
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