Impact of High Mortgage Rates: Record Number of Homes Bought with Cash in February
Monday, 1 April 2024, 18:03
Record Number of Cash Home Purchases
More than one-third of homes were purchased with cash in February as mortgage rates remain high, according to a new report from the real estate company Redfin.
Driving Factors
- Rising Mortgage Rates: Despite a slight decrease, rates are still elevated from pandemic lows.
- Price Surge: Home prices increased by 6.6% year-over-year in February, leading to larger down payments.
- Wealth Divide: High rates are exacerbating wealth gaps among different demographics, limiting homeownership.
Experts warn of lasting financial impacts on future generations due to these real estate trends.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.