- The U.S. housing market indicated signs of stress as a sharp uptick in mortgage rates and high home prices discouraged potential buyers and investors, the Financial Times reports.
- Low-interest rates and tight supply in the U.S. housing market drove record growth in home prices during the pandemic. The S&P CoreLogic Case-Shiller National Home Price Index rose 19.2% year on year in January.
- Average interest rates for a 30-year fixed-rate mortgage in the U.S. swung to 4.42% after hitting a record low of 2.65% in January 2021, marking a two-decade record,
- The average monthly payment on new mortgages jumped 25% in February, Y/Y, and accounted for a larger share of the typical person’s income.
- Higher home prices combined with higher mortgage rates made homeownership less affordable than ever since the financial crisis, an expert admitted.
- Investors now sought long-term cash flows concerned with rental properties and were more likely to start deploying capital elsewhere as the Fed raised interest rates.
