The Rising Cost of Mortgages: How Homebuyers Are Struggling to Keep Up

Mortgage rates have reached their highest levels in over two decades, creating challenges for homebuyers. The memory of historically low rates just a couple of years ago has left buyers feeling the impact of rising rates even more. Additionally, there is a major shortage of inventory as homeowners are reluctant to sell, leading to rapidly increasing home prices. Combined with high inflation and stagnant wage growth, buyers now have less purchasing power than they did twenty years ago, exacerbating the affordability crisis. The market has become heavily reliant on low interest rates to sustain current home price levels.