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The Home Buyer's Dilemma: As Mortgage Rates Fall, House Prices Soar out of Reach

Aly J. Yale | Money | Oct 13th, 2020
Category: Financial News

Kyle and Sara Sutton have been “looking aggressively” for a three- or four-bedroom, two-bath home in Grand Rapids, Mich. since April. Though they’ve made offers on five houses so far — even one without those much-coveted two bathrooms — they’ve lost out on all of them.

That’s despite increasing their budget by $50,000 (up to $300,000) and offering up to $30,000 above asking price.

“It feels like there’s no way we can compete in this market,” Kyle says. “As terrible as it would be for so many people across the country, we’re hoping for a massive drop in the housing market soon — or for us to win the lotto, which seems just as likely as winning a bid on a house right now.”

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