Here’s how much house you can get for your Bitcoin

Before the change in mortgage rates, the US housing market had been tough to crack.

Locking interest rates at pandemic and pre-pandemic low rates has prevented homeowners from selling or refinancing their homes.

Mortgage rates fall ahead of Fed cut

Meanwhile, the low supply of homes for sale as a result of pandemic-era interest rate fluctuations has kept home prices high. The 30-year fixed-rate mortgage in the US fell to 6.47% on August 8, according to data from the Federal Reserve in St. Louis.

In November, home loan rates rose to record highs not seen in nearly two decades. Mortgage rates were just below 8%. So the sudden drop in home loan rates ahead of any rate cut by the central bank is a relief to the housing market.

Median U.S. home prices rose as interest rates rose after the pandemic. The median home price in the US has been more than half a billion dollars since 2022, according to data from the Federal Reserve.

Austin, Texas real estate agent Melanie Suber said, “I don’t have an infinite amount of money, so I can’t afford to throw money in the bank because the interest rates are high.”

He may have been joking about the Federal Reserve because the central bank has an endless supply of money. The institution can continue to add dollars to the money supply at the rate it decides to maintain low unemployment and stable, predictably rising prices.

But Bitcoin (BTC), a new type of currency made by and for the Internet, does not have an infinite money supply. Its fixed supply of 21 million Bitcoin creates shelter for holders from central bank price inflation. This hard supply limit also results in a currency that gains purchasing power against the dollar as the supply of the dollar increases.

US House Prices in Bitcoin

As mortgage rates hit new lows ahead of a US Fed rate cut, here’s how much Bitcoin (BTC) you’ll need over the years to cover the average cash home purchase price internet safe

August 2014: Ten years ago, the price of Bitcoin was $491, according to historical crypto data from CoinMarketCap. The median home price in the United States was $340,400. So it took 694 BTC to buy a house at the average US price back then.

August 2019: Five years ago, Bitcoin was worth $11,523, while the average US home price was $382,700. So Bitcoin savers who had 694 BTC in 2014 and stuck with it instead of buying a house or spending only had to take 34 BTC out of their wallet to buy the median US house five years later.

August 2024: Bitcoin price has currently been trading in a range with key support around the $60,000 level since February. At this spot price on crypto exchanges, with the average US home selling for $501,700 in the second quarter of 2024, it takes less than 9 BTC to buy a home today at record home prices.

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