If you’re in the market to buy a home or some land in America, it just got harder. Interest rates have jumped even higher than 7 percent, making buying a home more difficult.
Buying a Home in Rural America Gets Tougher
The average rate on the 30-year mortgage increased to 7.37 percent on Thursday (April 11) — a steep climb from 7.11 percent at the beginning of the week, per Mortgage News Daily.
This, of course, is far from the post-pandemic interest rates in the 2 percent range.
Here we are, four years post-pandemic onset, now with the opposite happening. Mortgage interest rates in the United States have gone from being at an all-time low, to an all-time high. This makes it almost impossible for the average American, on the average American salary of around $63,000, to afford a home in rural America.
This news comes on the heels of more grim news of inflation rising even higher than previously thought.
These elevated interest rates, according to Yahoo Finance, have left would-be buyers in a pinch, causing both repeat and first-time buyers to step away from any home purchasing plans.
For many, any shift in rates means losing more of their purchasing power.
Interest rates of 7 percent are extremely high, but there is a chance that they could even go higher in the coming months. Lawrence Yun, Chief Economist at the National Association of Realtors says that, “March inflation figures were very bad, which also means bad news for interest rates.”
As inflation continues to skyrocket, the government tries to balance that out by raising interest rates. Seems counterintuitive for the average American.
Evan Paul is the host of Taste of Country Nights, a syndicated radio show heard on more than 130 country radio stations nationwide, every night from 7PM to midnight. He plays the best new country music and interviews today’s top stars, like Luke Combs, Morgan Wallen, Kenny Chesney, Miranda Lambert, Dan + Shay, Keith Urban, Carrie Underwood, Luke Bryan, Chris Stapleton, Lady A, + more!
