'I can't win in this market': Why LGBTQ homebuyers say mortgage rates are hitting them especially hard
Mrad, a gay man living in the Los Angeles area, has spent much of his adult life commuting several hours a day to his job at the NASA jet propulsion lab in Pasadena, California. When he found an apartment closer to work, he noticed a major improvement in his life.
However, his roommates moved out, and Mrad, 40, decided it was time to become a homeowner. He originally wanted to live within five miles of his work, but quickly found that may not be realistic in a hyper-competitive market.
"It was so strange for me to see a line of people outside an open house waiting to get in. I couldn't believe there was that much of a demand. … I kind of didn't know what I was getting myself into," Mrad said.
He began looking for homes early this year, and that five-mile radius soon expanded to 30 miles. At the same time, the Federal Reserve began hiking its benchmark interest rate, sending mortgage rates soaring. The 30-year fixed rate mortgage jumped to 5.78% the week of June 16, according to Freddie Mac, seeing its biggest one-week jump since 1987.
That has led to rapid changes in what Mrad might have to pay. Mrad, who is looking at small single family homes and condos, said he has seen the potential monthly payments on similar properties rise by more than $500 a month since his search process began.
