All articles tagged with #homeownership costs
The median monthly cost of homeownership in the U.S. has risen to $2,035 in 2024, driven by higher mortgage rates, insurance, and fees, making homeownership increasingly expensive amid high real estate prices. Meanwhile, utility costs are also climbing, especially in major cities, and rent prices continue to grow, adding financial pressure on Americans.
Real estate expert Mitch Roschelle warns that first-time homebuyers will face more challenges as mortgage rates and homeownership costs continue to rise, with the average 30-year-fixed rate mortgage at 7.375% and expected to increase. Hidden homeownership costs such as insurance and property taxes are also on the rise, leading to increased rents for landlords. Roschelle describes the current housing situation as a "price spiral" and advises buyers to consider the higher costs of owning a home in the current market.
Mortgage rates in the US have risen to their highest level in seven months, with the average rate on a 30-year mortgage now at 6.91%. The increase is largely due to the Federal Reserve's efforts to tame inflation, which has yet to reach its 2% target. Rising mortgage rates, coupled with increasing home prices, are making homeownership more expensive. The number of homes available for sale remains tight, with a current shortfall of about 6.5 million homes in the US. Despite these challenges, homeownership across the US is on the rise, including for people with modest incomes.