HOUSING AND INTEREST RATES

Published Sep 29, 2023 06:36 The average long-term U.S. mortgage rate has reached its highest level in almost 23 years, adding to the challenges faced by prospective homebuyers in an increasingly unaffordable housing market. The average rate on the benchmark 30-year home loan rose to 7.31% this week, up from 7.19% last week, according to mortgage buyer Freddie Mac on Thursday. This time last year, the rate averaged 6.70%. Borrowing costs for 15-year fixed-rate mortgages, often preferred by homeowners refinancing their home loan, also increased, with the average rate rising to 6.72% from 6.54% last week. This rate was at an average of 5.96% a year ago. Freddie Mac's chief economist Sam Khater noted that the "30-year fixed-rate mortgage has hit the highest level since the year 2000." He added that unlike at the turn of the millennium, house prices today are rising alongside mortgage rates due to low inventory, causing both buyers and sellers to hold out for better circumsta...

    Menu Property Residential Property prices NZ housig market gives first-time buyers a whiff of opportunity Ainsley Thomson New Zealand’s house price slump has given first-time homebuyers a welcome leg up in their quest to purchase a property, but it may be a short-lived opportunity. For a certain segment of the nation’s would-be homeowners – those armed with sizable deposits and solid incomes – 2023 has been a heartening year. First-time buyers grabbed a record 26 per cent share of the market in the third quarter, CoreLogic New Zealand says. Houses in the Herne Bay district of Auckland. New Zealand property has become more affordable this year, but the clock is ticking.  Bloomberg An 18 per cent fall in house prices between November 2021 and May this year made homeownership more obtainable, and also working in their favour has been strong wage growth, a possible peak in interest rates, an easing of lending rules and government policy changes. “This is the way I’ve been...

  HARE Story Lab  /  By  Tim Leslie ,  Simon Elvery,   Ben Spraggon  and  Cristen Tilley Wednesday 6 Sep 2023 at 12:03am If it feels like we're in uncharted territory when it comes to keeping a roof over your head, you're right.  Housing costs are the highest on record, and a closer look reveals who is being hit hard and who is unscathed. This chart shows the average cost of housing as a percentage of disposable income the household has to spend. Thinking about housing costs this way is useful for understanding the financial stresses associated with the cost of keeping a roof over your head. It looks pretty innocuous right now, doesn't it? But hidden within this line is the story of our housing crisis, and we're going to use data modelled by ANU social researcher Ben Phillips to help you understand it. Dr Phillips' modelling takes into account not just mortgage or rent payments, but other housing costs such as rates, strat...