08/19/2023
Today's Food for Thought......
So called "experts" try to rationalize that today's mortgage rates are not high given the history of mortgage rates in this Country. They're right! Since 1971 the average mortgage rate has been 7.75% and today we're a little over 7.00%.
Today's rate is the highest we've seen since April 2002 - let's call it 7.00% Now chew on these figures and you'll see the point that the so called experts are missing.
In 2002 the median home price in the US was around $175,000. Today the median home price is roughly $415,000. That's an increase of 237%!!! - Granted that's 21 years!
But wait, the experts say - median income has gone up too. Again they're right. The median US income in 2002 was $42,500 give or take. Today's median income is $71,000. But's that's an increase of just 167%!!!
The bottom line and the reason true experts in the housing industry are up in arms about today's rates comes down to the simple fact that very few people can actually afford to buy a home. Even if housing inventory/supply were to increase there would still be an imbalance in the market due to the lack of qualified buyers.
Disclaimer - the data I used came from reputable government agency websites and are approximated. Feel free to fact check my opinions and logic and I'd be willing to bet that if my data is off, the bottom line results will still look the same.
