1st Time Homebuyer Squeeze
What a difference a year makes when you're in the market for a new home, especially if you're a first-time buyer.
Thanks to a combined jump in mortgage interest rates and home prices, a starter home in many areas of the country could cost you several hundred dollars more per month today than if you bought it last year.
Nationwide, median home prices rose at annual rate of more than 10 percent in the first quarter of 2006, according to the National Association of Realtors.
Meanwhile, rates on adjustable rate mortgages, the most common for first-time buyers, are up more than a percentage point.
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