Arkansas HVACR NewsMagazine May 2024

HVACR NewsMagazine May 2024

State National Chapter News

of the 2,000 or less but that is just a prognostication. Of course this matters a lot if you need to buy a home; but, how does it affect our industry? 36,037 Arkansas homes sold in 2023. 3,802 thus far in 2024. Don’t have an exact number for existing sales versus new construction; however each home is an opportunity for our industry to provide our valuable service of safe, affordable comfort systems. We just need to let folks know that we are available to assure them that their home will be comfortable. After all, that is our business. 6.88 7.1 7.17

Mortgage Rates on the Rise Again

7.5

MORTGAGE RATES

6.9 6.94 6.88

6.87

7

6.79 6.82

6.77

6.74

6.69

6.63 6.64

6.62 6.66 6.6

6.5

6

1/4/24

2/4/24

3/4/24

4/4/24

P ercentages are hard to spend at the grocery store so let’s see what this means to an Arkansas family buying a home. The average home in Arkansas is valued at $203,305. At that number, 50+% of the homes are selling for more, some much more. So how does that affect a monthly mortgage. We ran some numbers. Remember that we assumed good credit, $5,000 down, and a 30 year mortgage. We did not include mortgage insurance which will be required unless you have a 20% downpayment. We also did not include taxes or insurance. In other words, this is the base — a low, low base but it does give some food for thought. At the 7.17% interest rate of today, the base payment is $1,342. Only 5 months ago on January 4, 2024, the payment would have been $1,207 — an increase of $134 at today’s rate. Who knows where this is going or when it will come down. Highter interest rates may reduce the size of home many can afford. We all have wondered where these folks were getting the money to afford opulent dwellings. We may see fewer of the 3,000+ square foot homes and more

Monthly Payment

$1,342

$1,189 $1,207

$1,065

$947

$1,100

$836

$600

3.00% 4.00% 5.00% 6.00% 6.12% 7.17%