flexiblefullpage - default
Currently Reading

The Rate Hike Saga Continues—Homebuyers to Be Hit With Even Higher Borrowing Costs

Advertisement
billboard - default
Housing Policy + Finance

The Rate Hike Saga Continues—Homebuyers to Be Hit With Even Higher Borrowing Costs

The Federal Reserve is increasing its short-term interest rates yet again, and that will likely amount to even higher borrowing costs for buyers already strained by historic home prices and rampant inflation


November 3, 2022
Graphic of man on stack of coins looking at green balloons with white money symbols
Image: Stock.adobe.com

The U.S. Federal Reserve announced on Wednesday that it was increasing its short-term interest rates by three-quarters of a percentage point, the most recent gain in a barrage of rate increases meant to cool inflation and tame a volatile housing market. Though mortgage rates are separate from the Fed’s rates, they typically follow the same trajectory, meaning that homebuyers can expect borrowing costs to rise even further in the months ahead, Realtor.com reports.

At the start of the year, mortgage rates rested at a historically low 3.22% for 30-year fixed-rate loans, but during the week ending October 17, they averaged 7.08%, and the latest Federal Reserve announcement likely signals more substantial increases that will price out an already large share of stalled would-be buyers.

“People want to know when it’s going to end and how high rates are going to be when it does,” says Realtor.com Chief Economist Danielle Hale. “Housing is an interest rate-sensitive sector. When interest rates are high, it’s much more challenging for buyers. And it looks like interest rates are going to stay high for the foreseeable future.”

Read more

Related Stories

Housing Policy + Finance

NAHB: White House Rental Executive Action Is ‘Wrong Strategy'

The National Association of Home Builders recently expressed its disappointment in the Biden administration's lackluster rental affordability strategy 

Housing Policy + Finance

Biden Administration Introduces New Initiative to Protect Tenants and Lower Rent Costs

President Biden recently announced a new action plan to address soaring rental costs and unfair housing practices

Affordability

New York City Faces Escalating Housing Crisis as Thousands Fall Behind on Rent

The New York City Housing Authority collected its lowest share of rent payments on record in 2022, and as housing costs continue to soar, the agency faces a dire financial crisis

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
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
Subscribe
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.