The Impact of High Mortgage Rates on the Housing Market

Mortgage rates in the US have surpassed 7%, the highest in 21 years, making an already unaffordable housing market even more expensive. With experts warning that rates could climb towards 8%, buyers and sellers are being advised to adjust their expectations. The combination of high rates, constrained inventory, and elevated prices is creating a sluggish housing economy. The Federal Reserve's concerns about inflation and the possibility of further rate hikes are likely to keep rates elevated. The surge in mortgage rates has pushed buying a home out of reach for many people, while historically low inventory and high prices further exacerbate the affordability crisis.