Let's talk about mortgage rates!
US Mortgage Rates
Year over year, the average 30-year fixed mortgage rate has doubled from 3.03% to 6.08%.
With the rise in rates, many prospective buyers may reconsider the option to purchase and choose to continue renting as housing affordability has reached its lowest level in decades.
Average housing prices recently hit new highs, but price growth has since slowed and sales volume has decreased.
Mortgage activity was hot post-2020 pandemic, but the cooling housing market has led many major brokerages, mortgage lenders, and property tech companies to announce varying degrees of layoffs. Experts say this may continue as forecasts predict a range of 35% to 50% decline in mortgage originations this year.
Source: Helios Quantitative Research, Bloomberg