(WTVO) — Spiking mortgage rates are pushing home affordability to a near record low.
The average rate for a 30-year fixed mortgage hit more than 5.5% on Monday. That is up from less than 3.5% in January. Home prices have also been rising steadily as the economy recovers from the pandemic, and are up nearly 6% in the first quarter of 2022.
Coupled with high interest rates and inflation, it is putting home buying out of reach for many Americans.
It is not good news for renters either. Renters across the country are facing major hikes, especially in major cities. Some rent prices have jumped as much as 58% over the last two years.
Experts believe that prices will continue to rise in the coming months, but at a slower pace than last year.