Activity is now at a 13-year low as rising borrowing costs take their toll on the US housing market.
Mortgage rates have cleared 7.5% this year, driven higher by the Federal Reserve’s war on inflation.
AdvertisementThe spike in mortgage rates dragged on the US housing market once again last month, as activity plunged to a 13-year low even as prices ticked up.
Soaring mortgage rates, driven to their highest level since the turn of the century by the Federal Reserve's war on inflation, have fueled the housing-market slowdown.
As a result, existing homeowners have opted to cling to the historically low mortgage rates they locked in over the last 15 years rather than move house.
Persons:
—, Freddie Mac, Lawrence Yun, Yun
Organizations:
National Association of Realtors, Federal, Service, Biden Administration, NAR