The average interest rate on a 30-year fixed mortgage in the United States has exceeded the 7% threshold for the first time in over two years, marking a significant shift in the housing market landscape.
According to CBS News business contributor Javier David, the spike in borrowing costs is being propelled by a combination of ongoing inflationary pressures and escalating geopolitical instability related to the conflict with Iran. The current rate represents the highest level seen since May 2024.
The convergence of economic and international factors continues to weigh on consumer lending, potentially impacting affordability for prospective homebuyers across the country.
https://prod.vodvideo.cbsnews.com/cbsnews/vr/hls/4843921_hls/master.m3u8
My nephew just gave up on buying entirely. Says renting is the only sane option now. Honestly, who can blame him?
I’m not surprised. Oil prices are spiking with all the Middle East drama, and that always flows into mortgage rates eventually.
Is this just the Fed ignoring inflation again? Or are the Iran tensions really driving bond yields up that much?
Wait, May 2024? That’s only two years ago. In housing time, that feels like a century. Things have gotten worse fast.
This is terrible news for first-time buyers. I already priced myself out, but now it’s completely impossible for most people.