This Often-Overlooked Homebuying Cost Could Make for an Even Larger Renters Market
If high home prices and rising mortgage rates aren't enough to keep buyers from breaking into the current real estate market, a third factor could keep them renting indefinitely: high closing costs.
Purchasing a home these days comes with its fair share of sticker shock, especially when a buyer's final offer is made to vanquish a bidding war. But as part of the victory, the buyer will also have to deal with paying for everything else that gets wrapped up into closing costs, such as taxes, title insurance, lender fees, and of course, real estate agent commission.
According to data gathered by CoreLogic's Closing Corp, closing costs rose 13.4% in 2021 year over year. As with many other things, loan origination became more expensive, but now that mortgage rates are on the rise, lower demand for mortgages has also contributed to these raised costs.
Source Fool.com
