Last week I wrote about being a survivor of inflation in the 80s. I did survive but did not get through it unscathed. I found this tidbit on the National
Association of Realtor’s website:
“Inflation accelerated to 8.5% in March,1 the strongest pace in 40 years.2 With inflation running this high, the average consumer is spending $500 more compared to one year ago, or $6,132 annually.3 The higher spending on other consumer items means that the consumer will have less income to spend on a mortgage payment and will be looking for a home that is about $40,000 cheaper.”
I think this was written a day or so before 30-year mortgage rates went up to 5% which caused about $400 increase in monthly mortgage payment for a median-priced home. That means buyers should reduce their spending by another $4,800.
