‘It’s discouraging’: Increasingly expensive housing market stymies would-be buyers
US mortgage rates are nearing 7%, creating new hurdles for home buyers and contributing to a stagnant housing market. Rates have climbed for four consecutive weeks, reaching their highest level since the Trump administration. High prices combined with these soaring rates are pushing homeownership further out of reach for many, leading to buyer retreats in markets like the Twin Cities. While some view the rate hikes as necessary medicine for the market, individual house hunters report feeling despondent and discouraged by the increasing costs.
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- ✓ Mortgage rates are nearing 7%.
- ✓ Rates have increased for four consecutive weeks.
- ✓ High home prices and rising mortgage rates are reducing homeownership affordability.
What changed
Mortgage rates have risen for four straight weeks to approach a 7% threshold.
Live updates
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US Mortgage Rates Approach 7% as Home Affordability Drops
US mortgage rates are nearing 7%, creating new hurdles for home buyers and contributing to a stagnant housing market. Rates have climbed for four consecutive weeks, reaching their highest level since the Trump administration. High prices combined with these soaring rates are pushing homeownership further out of reach for many, leading to buyer retreats in markets like the Twin Cities. While some view the rate hikes as necessary medicine for the market, individual house hunters report feeling despondent and discouraged by the increasing costs.
Why it matters
The Federal Reserve has hiked key rates to combat rising costs across the economy. This shift impacts the broader real estate market by increasing the cost of borrowing for new loans. Buyers in high-cost areas like the Bay Area and Seattle are now weighing these higher rates against shifting market conditions.
What is confirmed
- Mortgage rates are nearing 7%.
- Rates have increased for four consecutive weeks.
- High home prices and rising mortgage rates are reducing homeownership affordability.
Still unconfirmed
- Mortgage rates have hit their highest level since the Trump administration.
- Buyers in the Twin Cities are already in retreat due to rising rates.
- One house hunter described himself as despondent.
What to watch next
- Further Federal Reserve decisions on key interest rates
- Data on whether home prices drop in response to lower buyer demand
confidence 90%Sources used for this update (13)
- WSJ — The Stagnant Housing Market Is About to Face a 7% Mortgage
- AP News — Struggling US home buyers, and market, face new hurdles as mortgage rates near 7%
- CNN — Mortgage rates climb for fourth-straight week to hit highest level since Trump took office
- NBC News — Soaring mortgage rates and high prices are putting homeownership further out of reach
- CBS News — Mortgage rates are nearing 7%. One house hunter says he's "despondent."
- Mortgage News Daily — Mortgage Rates Only Modestly Higher Despite Bond Market Losses
- startribune.com — With mortgage rates on the rise, Twin Cities buyers already in retreat
- kare11.com — Mortgage rates reach new high
- Deseret News — How much more will mortgage rates go up?
- The Seattle Times — ‘Discouraging’ or ‘medicine’? How rate hike could affect Seattle housing market
- WSJ — Weeks Before the Midterms, Almost Everything Is Getting More Expensive
- WAVY.com — America In Focus: Affordability concerns rise as Fed hikes key rate, mortgage rate reaches nearly 7%
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