Where are mortgage rates headed?

Plus, an island in the Ohio sun

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  No images? Click here April 27, 2024 • Issue #139 Happy Saturday! This week, we’re looking at whether the recent run-up in mortgage rates will continue and an island home you don’t need a “three-hour tour” to get to.

Are 7% mortgage rates here to stay?

Getty Images Homebuyers were supposed to have it a little easier this year. But the eagerly-awaited reprieve from high interest rates has yet to materialize. Last week, Freddie Mac’s average 30-year fixed-rate loan jumped above 7% for the first time in nearly four months. Housing inventory is still remarkably low, too, and prices in many cities are trending ever higher. All this adds up to an increasingly unaffordable housing market: According to a report from the brokerage Redfin, the median mortgage payment on recent home purchases reached a record high of $2,775 in mid-April. Inflation is the main culprit here. After making good progress in reducing consumer price growth to 3.4% by the end of 2023, most experts were confidently predicting that inflation would continue to move toward the Federal Reserve’s target range of 2% this year. Instead, the price of everything from clothing to gas has only gone up. Len Kiefer, Freddie Mac’s deputy chief economist, tells me that the delay in implementing rate cuts likely means mortgage rates “are going to be higher for a little bit longer.” On the upside, Kiefer says Freddie Mac still expects inflation to ease later this year. In other words, consumer price growth will eventually slow down and drag mortgage rates down with it. But for now, the wait continues.

The Cost of Buying a House Reaches a New Record High

The Surprising Way Inflation Can Be Good for People With Debt

Listing of the week

Columbus Pics An island in the (midwestern) sun Have you ever dreamed of owning your own island? No nosy neighbors or HOA fees to worry about? Complete privacy? In those daydreams, did that island happen to be located in … the American Corn Belt? Well here’s your chance! Welcome to Journal Island, a private enclave in the middle of Buckeye Lake — and yes, we’re talking Ohio. The main house features six bedrooms, but additional rooms in the guest house bump the total to nine. The island has a custom-built waterfront theater, plus private walking trails and a patchwork of landscaped gardens. There’s also a swimming pool and an outdoor pavilion for relaxing and watching the sunset (or sunrise, whatever floats your boat). The home is located in Millersport, Ohio, and comes with two boathouses (you’ll need at least one boat to get to and from the island, after all). To be the master of this domain, you’ll also need $5.75 million, which is listed by Brian Kemp Of Keller Williams Realty. Columbus Pics

’Til next time, P.S. Have you seen a unique listing on social media I should feature in this newsletter? Or have a question about housing or mortgages you desperately want answered? Let me know on Twitter at @LeslieLCook or via email at leslie@money.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page.

Money’s Essential Home Buying Resources: Spring

On the hunt? Check out Money’s Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?

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