If you track the estimated value of your home on an advertising website, you probably won't be surprised to learn that homes have become more valuable this year. But overall, the total increase was enormous, 13-digit. The 5.3% increase in home values over the year was the largest in 11 months and highlighted the paradox of the current housing market, which doesn't really work for anyone. Demand for homes has plummeted because so few people can afford them, but prices have continued to rise because selling them has also become less attractive.
Few sellers want to give up a rate lower than -3% on a 30-year fixed mortgage they obtained during the pandemic for a loan that today would stand at just under 7%. Mortgage rates are rising for the fourth consecutive week. Federal Reserve Bank of Atlanta. They maintain an enormous amount of real estate assets, despite low buyer demand, because the value of homes skyrocketed during the pandemic and now a shortage of supply prevents those values from falling, said Chen Zhao, head of economic research at Redfin, in a statement of the press.
