flexiblefullpage - default
Currently Reading

The Federal Reserve Tightens Its Grip on the US Housing Market

billboard - default
Housing Policy + Finance

The Federal Reserve Tightens Its Grip on the US Housing Market

Mortgage rates just surpassed a 23-year high, and experts say more rate hikes are on the horizon

October 10, 2023
House made of hundred dollar bills next to house keys
Image: Olena Vasylkova / stock.adobe.com

Mortgage rates reached 7.49% for 30-year fixed-rate loans during the week ending Oct. 5, up from the previous week's 7.31%. This steep increase, marking a 23-year high, is driven by rising inflation, labor market fluctuations, and uncertainty regarding the Federal Reserve's actions. Elevated rates are dissuading potential homebuyers, making homeownership less affordable, even as housing inventory remains limited, Realtor.com reports.

The median home price stands at $430,000, putting further pressure on buyers, but prices have not exceeded the previous year's record high of $449,000. Despite mounting affordability challenges, eager homebuyers are still active in the market, and experts anticipate homes will continue to sell relatively swiftly compared with last year.

Whether these rates will edge even higher toward the dreaded 8% threshold remains anyone’s guess—but what does seem clear is that these rates aren’t just a random blip, but have staying power.

“Mortgage rates have remained firmly in a near 20-year-high territory over the last few weeks,” notes Realtor.com economic research analyst Hannah Jones in her analysis. “The combination of high mortgage rates and elevated home prices continue to push homeownership out of the realm of possibility for many would-be buyers.”

Read more


leaderboard2 - default

Related Stories

Single-Family Homes

What Does It Cost to Build a Single-Family Home?

A closer look at the itemized costs in each stage of construction for a single-family home


A Look at the Boom in Home Builder Stocks During 2023

In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?


Housing Demand Could Rebound in 2024 as Mortgage Rates Ease

The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024

boombox1 -
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

native2 - default
halfpage1 -

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.