Does Sky High Have Its Limits?

Most assuredly the answer to this concerning question is undoubtedly yes; the more pressing question is, “are we there?” —And of course there are varied answers depending on whose opinion you most value. From a personal standpoint, if you are a buyer, the question should be framed, “is it too high for you?” We are entering uncharted terrain. Never before have we seen a 28% year over year median price growth for a single-family home.  Therefore each family has answers to seek for their own situation as to what their true price threshold is…but more importantly, what is your payment threshold? It is no fun to be house rich and cash poor to the point of monthly cash and living insecurities. The somewhat sudden, yet quite meteoritic rise in interest rates, to curb inflation, will put a sizable dent in purchasing power. In theory, this should slow sales, and multiple offers, and allow inventory to rise, thus creating more competition for sellers, more choices for buyers and softer prices. The only problem is we’ve yet to really see this occur…

Please give us a call at Premier Funding Network to answer any of your mortgage questions, 714-283-9900.