I moved for work in a job that requires frequent moves. This is from a typically high COL to a mid-high COL. These are the changes I see from about 5 years prior:
Mortgage costs are around $1000 more a month at 7% than 3%. A $275k ish house is now going for at least $400k. The price and rate increase absolutely blow housing costs up. Rent for these properties rose from maybe $1500 a month to around $2500 a month. Landlords are sitting on around $1k extra each month if they refinanced around 3%
Groceries cost me around $100-150 extra a month.
Childcare prices rose around $200 a month.
All that adds up to around a $15k premium a year to live the same way I have been for the past few years. This is ignoring niceties like entertainment and activities.
I want to live in a house or townhome because I have a family with kids and pets but everything is becoming more expensive and is outpacing raises.
This is the best summary I could come up with:
The recent rise of the average long-term U.S. mortgage rate, which poses a new obstacle to aspiring homeowners hoping to purchase a property during this homebuying season, could have dramatic consequences on the country’s housing market.
The rise in mortgage rates comes as homebuying season, a time when the number of homes listed for sale increases, is heating up.
This climb in inventory starts in spring and normally peaks in summer before declining as the weather gets colder, marking one of the busiest times of the year for home sales.
While the jump in mortgage rates appears modest, it makes a huge difference for borrowers, who might end up paying hundreds of dollars a month more on top of what’s already one of the most significant expenses in their lives.
Many might decide that they can’t afford to buy a home—which is what happened when mortgage rates suddenly skyrocketed between late 2022 and early 2023 as a result of the Federal Reserve’s aggressive interest rate-hiking campaign.
Between late summer 2022 and spring 2023, a drop in demand caused by the unaffordability of buying a home led to a modest price correction of the housing market.
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