U.S. Housing Market Stares Down
In Addition To Higher Mortgage Rates, The Fed is Another Factor.
U.S. housing market continues to grow: On Monday, the average 30-year fixed mortgage rate jumped to 6.87%.That marks both the highest
mortgage rate since 2002
Higher mortgage rates lead to some Borrowers—who must meet lenders' strict debt-to-ratios—losing their mortgage eligibility.
The current housing correction is, of course, supported by the economic shock brought on by high mortgage rates.
As buyers pull back, the housing correction will cause inventory levels to rise and home sales volumes to fall.
As long as mortgage rates remain near 7%, housing analysts tells we'll see downward pressure on home prices in the near term.
What "pressurized affordability"—a 3 percentage point increase in mortgage rates combined with inflated property prices—can it withstand?