SRET - Housing Cheaper To Rent Than Own Is A Warning For Buyers And Lenders
- As government bond prices have declined on expectations of aggressive rate hikes from central banks, fixed mortgage interest rates (priced off bond yields), have leapt.
- After rising sharply during the pandemic, high home prices have now combined with higher interest rates to drive a 30.5% year-over-year increase in US mortgage payments to the end of March.
- In Canada, affordability is much worse. The median home price nationally has risen from $580,000 in 2019 to $880,000 in 2022.
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Housing Cheaper To Rent Than Own Is A Warning For Buyers And Lenders