They also stretched, buying a Bakersfield, California, home that carried an uncomfortable monthly payment. Within a year rates would drop enough to allow them to refinance and put hundreds of dollars back into their pockets. Buy now — when rates are high and demand low — and you’ll more easily snag a home than if you waited until rates drop and reignite extreme bidding wars. The monthly payment will be high, but that will go down once rates decline and you refinance. High mortgage rates aren’t only affecting consumers, but are also slamming many in the real estate industry as transactions decline.

Source: Los Angeles Times June 08, 2024 10:08 UTC