66% of Americans will hold off on buying a home due to rising interest rates and inflation

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Rapidly rising interest rates, a 41-year high inflation rate, and a tight housing supply are making buying a home even more expensive — and more complicated — for many Americans. A new GOBankingRates survey finds that 66% of Americans who were looking to buy a home in 2022 are now waiting for interest rates to hit 5%.

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The results are also reflected in the number of mortgage applications, which fell for the fourth consecutive week as of April 8. Mortgage rates fell 1.3% from the previous week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage application survey.

The MBA said mortgage rates for all loan types continued to rise, with the 30-year fixed rate breaking the 5% mark to 5.13%, the highest since November 2018.

Reflecting the 41-year high level of inflation, U.S. consumer expectations for the economy and personal finances turned gloomy in March as Americans expect home prices to rise at a faster pace over the next twelve months than they anticipated last year, according to a federal report. Reserve Bank of New York poll released April 18.

Unsurprisingly, Americans expect the average home price to rise sharply in the year ahead, with prices rising 7%, compared to the 5.7% rise expected a year ago. a year. This data represents the highest level of price increase expected since the start of the investigation in 2014.

Americans who are renters are also very pessimistic about their likelihood of owning a home in the future, with a drop to 43.3% this year from 51.6% in 2021. This figure also represents a low series, and is located well below 50% for the first. times since 2014, notes the survey.

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Along these lines, Americans also believe that rents will soon be higher – expecting an 11.5% increase over the next 12 months – compared to an expected 6.6% rise in February 2021, notes investigation.

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About the Author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a VP/Senior Content Writer for major New York-based financial firms, including New York Life and MSCI. Yael is now independent and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.

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