30 year fixed rate mortgage rates from Freddie Mac are now raised to over 6%, which will offer more downward pressure on housing prices as prospective buyers double-check their bank accounts and monthly budgets for enough cash to make the required month-to-month mortgage payments.
Low mortgage rates have been a critical factor fueling OC home affordability and home sales turnover. With OC area housing prices still out of reach for many in relation to real take home incomes, new higher mortgage rates may only accelerate the recent declines in home prices.
Another variable that is certainly not helping homesellers maintain value when selling their homes is inflation. Gasoline is $4.18 per gallon today (June 1) if you have a membership at Costco.
With hurricane season just around the corner oil prices are bound to keep going higher. Fuel and food are taking a bigger bite out of the OC resident's wallet affecting the ability of many to stay in the homes they have or for new buyers to enter the world of homedebtorship.
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