University of Alabama professor weighs in on homebuying as mortgage rates hit all-time high
Bennie Waller, a real estate professor with the University of Alabama, says you might not want to hold your breath for rates to come down.
BIRMINGHAM, Ala. (WBRC) - Housing demand is cooling off as mortgage rates hit the highest levels seen in over two decades. Many may be wondering whether they should wait to buy a home.
Bennie Waller, a real estate professor with the University of Alabama, says you might not want to hold your breath for those rates to come down.
As of Thursday, the 30-year rate averaged 7.31%, the highest rates have been. For context, just one year ago the average was about 5.6%.
Waller says first-time homebuyers or those looking to trade up can’t get the product they need because of interest rates.
I asked Waller whether buyers should wait if possible. He says there might not be much use in that.
“If you think that it’s the home you want, if you’re committed to being there or you think you’re going to be there for an extended period of time, I don’t think you’re going to see too much relief from these high interest rates in the next five, six, seven, maybe even the next decade,” he says.
Waller also says he believes the high mortgage rates are also going to effect rental prices, because more people will not qualify for loans, or not want to apply for one with such a high rate.
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