Currently Reading

Another Tough Blow for Homebuyers as Interest Rates Surpass 6%

Market Data + Trends

Another Tough Blow for Homebuyers as Interest Rates Surpass 6%

The Federal Reserve sent its rates soaring by 75 basis points earlier this week, subsequently pushing the 30-year fixed mortgage rate beyond the 6% mark

June 16, 2022
Cash spread out behind red, increasing arrow

The Federal Reserve raised its rates by 75 basis points on Wednesday, sending the average 30-year fixed-rate mortgage from the mid-5% range to over 6.20%, reports. The most recent rate hike is the largest incremental jump since 1994 and it proves that the Fed is taking an even more aggressive approach to controlling inflation than market experts initially expected.

A 6% mortgage rate is pushing a growing number of buyers to the brink of their budgets, and many are backtracking on their home purchasing plans. Additional rate hikes will create an even wider affordability crisis that the Fed hopes will slow home sales and quell runaway inflation, but for outpriced homebuyers, more gains are further delaying opportunities for much-needed home purchases.

About 18 million households, or 15% of all households, who could have qualified for a mortgage at the beginning of this year can no longer do so because of the higher rates, according to Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors.

“Some of the buyers have reached their financial limits—and they’re out of the market,” she says.

Others are choosing less expensive homes or postponing their searches. The latter is particularly bitter for many first-time buyers, who are contending with fast-rising rental prices

Read more

Related Stories

Housing Markets

Miami Tops the List of the Nation’s Most Competitive Rental Markets

Remote workers from around the country are flocking to sunny metros like Miami, where rental demand is at an all-time high

Market Data + Trends

Investors Are Flipping Houses at a Faster Pace, but Profits Are Falling

Shrinking supply and elevated costs posed challenges for investors flipping houses at the start of 2022

Market Data + Trends

Rising Real Estate Listings Signal Strong Post-Pandemic Recovery for the Housing Market

As demand softens, a resurgence of home listings sets the stage for the housing market's post-pandemic rebalancing 


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.