Home-buying deals in Sun Belt cities fail at highest rate in US – NASB Financial (OTC:NASB), Redfin (NASDAQ:RDFN)

As of September 23, the national average for a 30-year fixed mortgage was 6.43%, stalling the housing market across the country.

Standard home value in the United States is $356,026, up 16.5% from a year ago, although home values ​​fell 0.3% from July, the most sharp monthly decline since 2011, by Zillow Group Z.

What happened: About 64,000 home purchase deals fell through in August, corresponding to 15.2% of homes under contract for the month, RedFin reported.

The percentage of failed home purchase deals has hovered around 15% for the past three months, and before the pandemic, that percentage had hovered at 12%.

Although home values ​​have fallen since their peak in April, they are still up 43.6% since August 2019, according to Zillow.

In addition to record home values, the Fed’s interest rate policy also adds to higher mortgage payments, as the monthly mortgage is now $1,643 from $897 at the end of August 2019, up by 83% compared to before the pandemic.

The places hardest hit by rising rates are Sun Belt cities that have grown in popularity during the pandemic, including Jacksonville, Las Vegas and Atlanta.

In Jacksonville, 26.1% of homes under contract in August failed, the highest percentage among 50 of the most populous U.S. cities.

Also read: BEST REAL ESTATE CROWDFUNDING PLATFORMS

Why is this important: On September 21, the Chairman of the Federal Reserve Jerome Powell acknowledged that the housing market was hot and there needed to be a “reset” as home values ​​had reached record highs.

“Some homebuyers find that by the time they enter into a contract and lock in their mortgage rates, rates could be much higher than they were when they viewed the home and/or were pre-approved . It can kill the deal because the buyer is no longer financially comfortable with the purchase,” said Sam Chutea red fin RDFN real estate agent who works with sellers in Miami.

As more buyers pull out of the market due to exorbitant home values, the rental market has surged, with typical monthly rent at $2,090, up 12.3% year-over-year. the other.

Additionally, cities like Miami and New York lead in annual rent growth, up 21.9% and 17.9% year-over-year respectively.

It should be noted that the Sun Belt metropolitan areas have seen the strongest growth in the number of home buyers since the pandemic. Inevitably, home values ​​skyrocket, leaving those unwilling or unable to secure a mortgage to rent.

For potential buyers looking to buy their dream home, mortgage lender NASB Financial Inc. NASB offers a variety of banking products including checking, savings and certificate of deposit accounts. It also offers mortgage and refinance options, including self-employed mortgage options for the do-it-yourselfer or self-employed day trader.