Home Buyers in Mobile, Alabama Face 7% Interest Rates

In a Bloomberg report from 2023, it is revealed that nearly 45% of people aged 18 to 29 live with their parents. Many real estate specialists attribute this trend to high mortgage interest rates that hinder their ability to purchase a home.

Citing a specific case, Coleman Emmons, 25, who got married last November, is eager to acquire his own property but currently feels unable to enter the real estate market. Along with his peers, he sees no option but to rent until they have the opportunity to buy.

Dr. Bob Wood, a professor at the University of South Alabama and a finance expert, does not hesitate to assert that inflation is the main cause of high mortgage interest rates, indicating that these have increased from 3% to 7%. He states, “It is primarily driven by food and fuel costs. At the moment, things are, for lack of a better word, a bit off-balance.”

Real estate agent Sam Winter from Sam Winter & Co. Real Estate observed that despite this increase, properties in Mobile and Baldwin County continue to sell quickly, affirming that even with rates around 7%, the market remains strong. He states, “There are still many buyers in Mobile and Baldwin County who are eager to purchase.”

Data from the Mobile Area Association of Realtors shows that in the last month, 410 homes were sold in Mobile County and 622 in Baldwin County. The average home price is $238,000 and $477,000, respectively.

Returning to Coleman Emmons, he hopes to soon buy the house of his dreams within his budget. “Recently, about a month ago, we got a dog, and I would love to have a nice yard in a good neighborhood for him,” he shared.

Dr. Wood, for his part, predicts that interest rates will not drop back to 3% in the short term. A possible reduction in interest rates to 5% is foreseen, but not until 2027.

Available Foreclosures:

Mobile County: 35 homes available.

Baldwin County: 42 homes available.

By Elías DaSilva | 30 de octubre de 2024