With interest rates rising, mortgage demand has fallen to a 22 year low
With interest rates rising, mortgage demand has fallen to a 22 year low
It is no question that housing is extremely expensive in the United States, and especially in New York and California in particular. As higher interest rates have become the narrative, mortgage demand has fallen to a 22 year low.
Higher interest rates have made mortgages more expensive, and with the Fed raising interest rates by 0.75% both in June and July, that will make mortgages even more expensive. In January of 2022, the 30 year fixed rate stood at around 3%, now it currently sits near 6%. Obviously that is making for higher interest payments and adding to the burden for new home buyers.
Homes being extremely expensive coupled with rising interest rates we are seeing a slowing of a demand. For those of you on the sidelines waiting to buy a house, be patent this could be what you have been waiting for. With recession talks on the horizon we could finally see some softness in the housing market.
