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Housing market
(77WABC) — Escalating mortgage rates are causing a slump in the housing market.
This comes ahead of today’s Federal Reserve announcement by chair Jerome Powell, with investors anticipating a 75 basis point rate hike. This morning’s average rate is 6.28% for a 30-year fixed rate. One week ago it stood at 5.55%.
Mortgage rates are slowing demand. According to the National Association of Realtors, home sales have fallen for six straight months.
Property prices have fallen by up to 20 percent across parts of the U.S. as buyers shun the market amid ‘Bidenflation’ and spiking interest rates. Asking prices have dropped in more desirable neighborhoods by up to $400,000 and in less desirable areas by $115,000.
