First-time homebuyers in the US continue to face high mortgage rates and rising home prices. Bank of America economists warn that the housing market is "stuck" and may not improve until 2026 or later. Home prices and mortgage rates are expected to remain high, and the housing shortage will persist.
Key Issues:
- Affordability Crisis: Housing affordability has worsened due to soaring home prices during the COVID-19 pandemic and rising mortgage rates.
- Supply Shortage: Limited supply of homes is driving prices up. Homeowners with low mortgage rates are reluctant to sell, exacerbating the shortage.
- Lock-In Effect: Many homeowners are staying put to avoid higher interest rates on new mortgages, limiting the supply of available homes.
- Future Prospects: The housing market is expected to remain challenging, with little relief in sight for first-time buyers.
Despite the bleak outlook, industry experts urge first-time buyers to stay patient and not give up on their homeownership dreams.
