JACKSONVILLE, Fla — With mortgage rates continuing to climb, Consumer Warrior Clark Howard says while this hurts the affordability for first-time buyers, it can help moderate selling prices.
Clark said, “What happens is essentially buyers eventually go on buyers strike. You get to a point where you just can’t afford to make the payments and so that creates a process of what they call price resistance.” Clark adds that price resistance will be part of what heals the runup in the housing market. “The continuous up, up and away...that’s not what’s going to happen with higher mortgage rates.”
You can find more tips from Clark on his website.
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