Golden handcuffs: Low fixed-rate mortgages are trapping millions of US homeowner...
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Low fixed-rate mortgages are trapping millions of US homeowners as they wait for a better time to sell. Here are 3 ways to make money from your home without listing it
homeownership have long been
Just when it looked like mortgage rates would return to their 20-year peak of 7.08% — a high last experienced in November, 2022 — the U.S. housing market took a turn in the buyers’ favor.
After weeks of upward momentum, the average 30-year fixed mortgage rate pulled back to 6.42% this week.
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A series of bank collapses put significant downward pressure on rates, benefitting borrowers in the short term, according to Freddie Mac’s chief economist Sam Khater.
But with the average homebuyer’s monthly mortgage payment at $2,556, and widespread uncertainty about the health of the U.S. economy, homebuying is expected to remain cool in the near future.
If you’re one of the millions of Americans who feels priced out of the housing market, here are three ways to use your current home to build wealth.
Become a landlord
Many homeowners secured low fixed-mortgage rates of 3-4% in 2020 and 2021, when the COVID-19 pandemic drove borrowing costs to historic lows.
Now, as mortgage rates and house prices are near record highs, some homeowners are so desperate to hold onto their low mortgage rates that they’re choosing not to sell their properties — even if they’d like to.
Instead, some are becoming "accidental landlords", according to Fortune, and are leasing or renting out properties while they wait for a better time to sell — and buy something else when they can get a more reasonable mortgage rate.
There are actually several benefits to renting out your property.
The rental income you generate can be set aside for a future down payment or to add to your retirement nest egg.
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