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The current average interest rate of 7.22% is daunting, prompting many buyers to rethink their decisions. Coupled with an average housing price of $47,000, a number so low it is almost unattainable in prime markets like Southern California, many prospective homeowners are choosing to hold off on purchases. This scenario presents a bizarre contradiction; while many are eager to buy, the cost of doing so is making them reconsider.
A closer look shows that many sellers are losing potential buyers not due to the lack of interest but because of the stringent financial conditions. Mortgage rates that hover around 7% make financing a home a serious strain on the wallet, forcing folks to cancel contracts they might have otherwise pursued.