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Report: Rental prices reach new high, may be easing

Posted at 7:13 AM, Jun 23, 2022
and last updated 2022-06-23 10:13:03-04

(KERO) — Rental prices hit another high last month but there may be an end in sight.

According to a new report from Realtor.com, the rise in prices is finally slowing down.

But they're still 25% higher than before the pandemic.

The median rent for the month of May was around $1,850.

An economist with Realtor.com says the recent pace is just unsustainable and they do expect rental prices to taper off.

More people applying for adjustable rate mortgages

As interest rates surge more and more people are looking into adjustable rate mortgages (ARM).

Mortgage rates are now nearly double what they were a year ago.

According to the Mortgage Bankers Association, the share of ARM applications jumped to more than 10% of total applications.

Adjustable rate mortgages offer lower interest rates but are considered riskier because the rates can go up or down.

However, experts say qualifying for an adjustable rate mortgage is now harder than it was in the years before the 2008 housing crash.