Rising interest rates have damaged housing affordability, and mortgage demand has fallen to the lowest level since 1995. Many homeowners are reluctant to sell their homes in the current environment, further restricting available housing.
“Homebuying activity continues to pull back given reduced purchasing power from higher rates and the ongoing lack of available inventory.”—Joel Kan, Deputy Chief Economist of the Mortgage Bankers Association
What impact will prolonged high interest rates have on the real estate market, and how can consumers prepare for the increasing cost of owning a home?
Watch the video below for exclusive executive insights on this topic from Philip N. Diehl, 35th Director of the U.S. Mint and President of U.S. Money Reserve.
Related headlines from around the web:
- The Wall Street Journal: “Home Sales on Track for Slowest Year Since Housing Bust”
- Fox Business: “Mortgage demand plummets to new three-decade low as rates race toward 8%”
- Business Insider: “Americans now need to earn a record $115,000 to afford a typical home—up more than 50% since the pandemic”
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Watch U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.