Why Now Is A Perfect Time To Sell Your House

Want even more evidence that inflation is making a comeback in the U.S. economy?

Then look no further than the escalating cost of living the American dream of home ownership.

Average home prices jumped a whopping 7.6% year-over-year in the month of April to a median price of $302,200. And “bidding wars” are back for the first time since the days of the housing boom in 2006, according to a recent Bloomberg article.

In fact, home sellers are receiving a record 98.8% of the asking price!

There are two main reasons for the new American housing boom. First, a relatively tight supply of available listings is playing a role.

But the main reason for the home buying scramble is because the cost of financing the American dream is going through the roof, as you can see in the chart above.

The average rate for a 30-year mortgage jumped to 4.61% last week, the most expensive home loan rate in seven years!

That’s due mainly to skyrocketing Treasury bond yields. The interest rates on 30-Year U.S. Treasuries hit 3.25% last week. This up from 2.6% six months ago.

That translates into much higher monthly mortgage payments for Americans. In fact, the monthly cost on a $300,000, 30-year loan is up over a hundred bucks since January, to $1,540 today. This up from $1,424 at the beginning of this year.

And that helps explain the sudden pickup in home sales. Prospective buyers are rushing to close and lock in mortgage loans before borrowing costs go up even more.

The data is solid evidence of a strong economy to be sure. But, it’s also a sure sign that inflation is back in a big way.

Invest accordingly.

Here’s to growing your wealth,

Mike Burnick

Mike Burnick
Chief Income Expert, Mike Burnick’s Wealth Watch

You May Also Be Interested In:

Mutant Strains, But No Overreaction – Try the Candied Pecans

What a difference a day makes! US futures are holding steady this morning not suggesting any sense of unease or panic over the latest mutant version of Covid-19. Flashback to yesterday morning – when the news out of Europe – more specifically from the UK – about a new mutant variation of Covid-19 hitting the countryside sent European stocks careening and US futures lower in pre-mkt trading.

Mike Burnick

Mike Burnick is the editor of Mike Burnick’s Wealth Watch, Infinite Income, Amplified Income and Millionaire Moments. Mike has been bringing his trading strategies to the masses for over 30 years. He has been with Seven Figure Publishing since 2017. In 2018, the average return of Infinite Income beat the...

View More By Mike Burnick