The Daily Money: Can I afford to insure my home?
Good morning! It's Daniel de Visé with your Daily Money.
Even if you can afford to buy a home these days, Medora Lee reports, ask yourself if you can afford to insure it.
Nearly 30% of American homeowners are nervous about rising home insurance rates, according to insurance comparison site Insurify.
Home insurance prices jumped 19% last year, or $273 per policy, on average, according to a study by Guaranteed Rate Insurance.
And more increases may be on their way.
Why first-time homebuyers aren't buying
In a recent poll, 71% of potential first-time homebuyers said they won’t enter the market until interest rates drop.
Prospective homeowners sit at an impasse. Mortgage rates are not particularly high, at least in a historical sense: Roughly 7.5%, on a 30-year fixed-rate loan. Yet, first-time buyers are painfully aware of how much lower rates stood just a few years ago: Below 4%, on average, through all of 2020 and 2021, and below 5% through most of the 2010s.
The new poll is one of several new surveys that show would-be homebuyers balking at elevated interest rates. And the sentiment isn’t limited to new buyers.
But will we ever see the 4% mortgage again?
📰 More stories you shouldn't miss 📰
- Red Lobster: The show is not over
- Biden's tariffs will take a toll
- Companies now prize skills over experience
- The Nvidia split: What investors need to know
🍔 Today's Menu 🍔
Chick-fil-A is introducing a new limited-time Maple Pepper Bacon Sandwich on June 10, and, in the fast-food multiverse, evidently that is a big deal.
USA TODAY was invited to Chick-fil-A’s Test Kitchen, outside Atlanta, to taste it before its nationwide debut.
Here’s what fans can expect.
About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.
