ANALYSIS | SIZE REDUCTION? WHY RISING INTEREST IS YOUR FRIEND'
0Analysis | Size Reduction? Why Rising Interest is Your Friend'
While the median home price in the U.S. is around $400.000. it stands to reason that older homeowners have a higher median value than younger homeowners who are new to the market. And older homeowners in the area. many cases benefit from decades of high house prices. They are also more likely to have paid off their home or have relatively small mortgages relative to the equity in their home. If someone sold a paid off home for $800.000 and bought a cheaper retirement home for $500.000. they wouldn't give up their low mortgage rate because they don't even have a mortgage and since they're paying all the cash they don't have. 'don't care if the mortgage rate is 7% or more. Given the rate hike this year. there's actually a gain the decent return they can make on the extra home equity gained from the transaction. which hasn't happened in most of the previous decades.It is true that home prices are now falling most of the time convention. but outside of some of the biggest boom markets during the pandemic. home prices are still going up year on year.'
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