Update (1320ET): The average rate on the popular 30-year fixed mortgage rate hit 8% Wednesday morning, according to Mortgage News Daily.
That is the highest level since mid-2000.
“The fact is that many borrowers have already seen rates over 8%. That said, many borrowers are still seeing rates in the 7s due to buydowns and discount points.”
As CNBC reports, to put it in perspective, a buyer purchasing a $400,000 home with a 20% down payment would have a monthly payment today of nearly $1,000 more than it would have been two years ago.
As Andrew Moran detailed earlier via The Epoch Times, the U.S. housing market has witnessed a slowdown in activity this year due to tighter supply, says Thomas Barkin, the president of the Federal Reserve Bank of Richmond.
Speaking at a Real Estate Roundtable event in Washington, D.C., Mr. Barkin explained that home prices have remained strong in an environment of higher interest rates and slowing sales volumes.
But the industry has been pining for lower rates, he noted.
“You may know that the last time the Fed tackled high inflation, in the ’80s, homebuilders sent Paul Volcker two-by-fours inscribed with the message: Lower interest rates,” he said.
In a letter to Fed Chair Jerome Powell by the National Association of Home Builders, the Mortgage Bankers Association, and the National Association of Realtors, the central bank was urged not to pull the trigger on more rate hikes.
“Further rate increases and a persistently wide spread pose broader risks to economic growth, heightening the likelihood and magnitude of a recession,” the letter stated.
A treasure trove of data and research shows that further Fed tightening could exacerbate current conditions in the real estate sector, especially regarding affordability.
Rates have hit 10% !!!!!
They don’t care at all… destroying the USA is their goal… this is just one part of that
Why do you not like rising interest rates? Only bad if you’re a borrower. If you look at it from the other side it’s an opportunity. If you lend your money (and there are many ways to do that including simply depositing money in an interest bearing bank account) then you can make some money.
Because everyone wasn’t born with a silver spoon in their mouth or inherit a fortune 8:29. Can you comprehend that 8:29 ?
3:18, I wasn’t born with a silver spoon in my mouth, and didn’t inherit a fortune. But my parents taught me always to save as much as I could, and the ONLY thing that was ok to borrow money for was house with a stable 30 year mortgage (none of those silly versions with rates that can change, or balloon payments at the end that you just have to refinance). Always live below your means, make savings a habit, and compound interest will reward you. Especially when interest rates go up.
When you were younger 6:33, you didn’t have our government working against you
Hey 8:29 – Let’s shove the unfortunate down a little lower while you prosper. That’s your selfish mentality. It’s all about the Benjamin’s isn’t it.