Struggling US home buyers, and market, face new hurdles as mortgage rates near 7%
Freddie Mac said the average 30-year mortgage hit a 14-month high, while another Fed hike could keep borrowing costs elevated.
- On Wednesday, the Federal Reserve voted to boost its benchmark interest rate by 0.25%, pushing 30-year fixed-rate mortgages above the 7% threshold this week.
- Mortgage rates follow the trajectory of 10-year Treasurys, influenced by inflation and bond market expectations. Rising borrowing costs have kept the housing market in a rut since the war between the U.S. and Iran began in late February.
- Freddie Mac reported a 14-month high of 6.76% on Sept. 10, while Orlando Regional Realtor Association President Chris Atwell noted Central Florida median home prices remain above $400,000.
- Higher rates squeeze affordability and sideline prospective buyers, said Lisa Sturtevant, chief economist at Bright MLS. Sellers may need to "reduce prices, offer more concessions or lower the price of the house" to attract buyers.
- The Fed indicated Wednesday that another rate hike could occur later this year. "I believe probably for the rest of the year, we'll be in that same environment," Ali Partovi of Partovi Funding LLC said.
27 Articles
27 Articles
Mortgage rates in the U.S. continue to rise, approaching 7%, affecting the purchasing power of home buyers.The Federal Reserve raised its interest rate, which could further push mortgage rates and slow down the real estate market.
Associated Press News
Struggling US home buyers, and market, face new hurdles as mortgage rates near 7%
Mortgage buyer Freddie Mac's latest snapshot of mortgage rates is due out later Thursday and expected to show that the average rate for a 30-year mortgage rose again this week, moving closer to 7%.
Housing market data to watch as mortgage rates top 7% - Boston Real Estate Investors Association
Mortgage rates crossed 7% this week, adding another affordability challenge for a housing market already navigating uneven buyer demand. As Logan Mohtashami explains in his latest mortgage rate analysis, the question now is how buyers respond. It will take time for that response to show up in housing market data. And this week’s numbers won’t […]
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