The Impact of High Mortgage Rates on Upgrading from a Starter Home
Challenges of Upgrading from a Starter Home
If you bought a starter home during the pandemic, or even slightly before, you may find that the value of your home has gone up a lot. Median home prices have increased 33% since January of 2020, which means your house could be worth a lot more than you paid for it, depending on exactly when you bought it.
Home Appreciation and Upgrading Dilemma
While home appreciation is a positive outcome, the rise in mortgage rates is hindering many homeowners from selling their starter homes and moving up.
Impact of Mortgage Rates
Higher mortgage rates make it more challenging for individuals to afford new homes, even with increased property values.
Considerations for Future Decisions
Staying put or waiting for potential rate fluctuations are among the strategies discussed as homeowners navigate the complexities of upgrading from a starter home.
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.