Homebuyers are getting a double whammy. "Home prices are up and mortgage rates are up," said Frank Nothaft, chief economist with CoreLogic. Nationwide home prices are almost 7 percent higher than a year ago. And the average long-term mortgage cost has risen by seven tenths of a percentage point interest compared with this time in 2017, according to CoreLogic. "That translates into a 16 percent increase in the monthly principal and interest payments to buy the same house," Nothaft said. For the first-time homebuyer there is a 19 percent increase from one year ago. "Average wages around the country are up only 2.5 percent to 3 percent from a year ago. Each passing month as prices rise and mortgage rates rise, it's increasingly challenging for home buyers, especially entry-level homebuyers," he said. "The pinch it takes out of their monthly budget starts to affect more and more buyers across the country." Dallas-Fort Worth is one of the markets with record-high home costs. While overall median home prices in North Texas are up about 5 percent so far in 2018, prices for the most affordable houses — under $200,000 — are rising at almost twice that rate. CoreLogic is forecasting further increases in home prices and interest rates in the year ahead.
- Dallas Morning News, June 15, 2018