How high can you go?
The average US mortgage rate has surged to 7.1% — a level it has not reached for over two decades, according to data published by Freddie Mac last week — as sustained interest rate rises from the Federal Reserve continue to filter through into the mortgage market.
Locked-in
The reverberations of these high mortgage payments, coupled with the sizable contingent of present homeowners who secured mortgages during the era of ultra-low interest rates, have cast a shadow over the housing market. Understandably, everyone already holding favorable fixed rates are reluctant to re-enter the mortgage market, leaving aspiring buyers with limited options. The consequence? A nearly 19% plunge in year-over-year sales of existing homes in June, converging to make the most challenging housing affordability conditions in the last four decades, per Bloomberg.
