As interest rates rise, the 'American dream' of homeownership fades for some
2 years, 4 months ago

As interest rates rise, the 'American dream' of homeownership fades for some

NPR  

As interest rates rise, the 'American dream' of homeownership fades for some Enlarge this image toggle caption Seth Wenig/AP Seth Wenig/AP Mackenzie Bathgate and her husband, Jon, have been trying to buy a home in Lansdale, PA., for eight months now. "At this point, we've seen 28 homes in person, but ultimately made seven different offers, each one a little bit more aggressive than the last just because we got so tired of it," Bathgate said. Enlarge this image toggle caption Mackenzie Bathgate Mackenzie Bathgate Meanwhile, they've been watching interest rates spiral higher and higher — each increase adding to the pressure of finding their home. Enlarge this image toggle caption Courtesy of Peter Heuer Courtesy of Peter Heuer Heuer said he was happy with the stability and freedom that homeownership would provide him and his family.

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History of this topic

Mortgage rates: Bad news if you’re looking to buy a house in the next two years
1 month ago

Mortgage rates: Bad news if you’re looking to buy a house in the next two years

CNN  

Washington CNN — Americans looking to purchase a home in the next few years will have a tough pill to swallow. Mortgage rates are now expected to stay stuck above 6% for at least the next two years, according to economists and recent forecasts. Wells Fargo economists project mortgage rates to average 6.3% by the end of next year, according …

Mortgage rates are rising. Experts cite economic strength, inflation and possible Trump win
1 month, 3 weeks ago

Mortgage rates are rising. Experts cite economic strength, inflation and possible Trump win

LA Times  

Mortgage rates have been on the rise despite recent action from the Federal Reserve. In September, the Federal Reserve lowered its benchmark interest rate for the first time since 2020, giving hope to prospective home buyers that mortgage rates would follow suit. “They are saying ‘What’s going on?’” The fact that mortgage rates have gone up despite the cut underscores …

Fears grow for the future of America's favorite home repair stores
4 months ago

Fears grow for the future of America's favorite home repair stores

Daily Mail  

Concerns about the future of two of America's favorite home improvement stores are growing. CEO Marvin Ellison said that elevated mortgage rates have deterred Americans from moving home and carrying out DIY projects. Home Depot rival Lowe's also cut its annual profit and sales forecasts on Tuesday. Customers are putting off large home renovation projects until loan rates come down …

Why have interest rates fallen, and what does it mean?
4 months, 3 weeks ago

Why have interest rates fallen, and what does it mean?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England has …

US home sales fell in June to slowest pace since December amid rising mortgage rates, home prices
5 months ago

US home sales fell in June to slowest pace since December amid rising mortgage rates, home prices

Associated Press  

LOS ANGELES — The nation’s housing slump deepened in June as sales of previously occupied homes slowed to their slowest pace since December, hampered by elevated mortgage rates and record-high prices. Existing home sales sank to a nearly 30-year low last year as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to mortgage …

The US housing slump deepened this spring. Where does that leave home shoppers and sellers?
5 months, 2 weeks ago

The US housing slump deepened this spring. Where does that leave home shoppers and sellers?

Associated Press  

LOS ANGELES — The housing market shows few signs of busting out of its three-year funk after a disappointing spring season and amid a gloomy outlook for the summer and fall. The weak spring sales are a reflection of the affordability challenges many home shoppers face: the average rate on a 30-year mortgage rate is moored near 7%; the supply …

High interest rates are hurting people. Here’s why it’s worse for Californians
5 months, 3 weeks ago

High interest rates are hurting people. Here’s why it’s worse for Californians

LA Times  

By the numbers, the overall U.S. economy may look good, but down at the street level the view is a lot grimmer and grittier. “I’ve been really sacrificing a lot to get to this point to purchase a home and now I just feel like I got here but I didn’t work quick enough because interest rates have gotten the …

They bought homes with the intention to refinance. Now they’re stuck
6 months, 3 weeks ago

They bought homes with the intention to refinance. Now they’re stuck

LA Times  

Steven Wolf, his wife Katherine and their children Rebekah, 4, and Everett, 6, are selling their home they purchased in December 2022. Steven and Katherine Wolf are stuck with an uncomfortable mortgage payment as interest rates haven’t dropped like they predicted. Then, rising mortgage rates and falling home prices prevented many Americans from executing their plan to refinance out of …

U.S. existing home sales drop 1.9% in April, pushed lower by high rates and high prices
7 months ago

U.S. existing home sales drop 1.9% in April, pushed lower by high rates and high prices

Associated Press  

WASHINGTON — High mortgage rates and rising prices continued to put a damper on the spring homebuying season last month. Existing home sales fell 1.9% to a seasonally adjusted annual rate of 4.14 million in April from a revised 4.22 million in March, the National Association of Realtors reported Wednesday. Homeowners have hesitated to put their houses on the market …

US Existing-Home Sales Decline as Rates Keep Buyers Sidelined
8 months ago

US Existing-Home Sales Decline as Rates Keep Buyers Sidelined

Live Mint  

-- Sales of previously-owned homes in the US fell in March from a one-year high, underscoring the lingering impact of high mortgage rates and elevated prices. “Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” NAR Chief Economist Lawrence Yun said in a statement. At the current sales pace, selling all …

Has the great Australian dream of affordable home ownership turned to a nightmare?
8 months, 2 weeks ago

Has the great Australian dream of affordable home ownership turned to a nightmare?

ABC  

Almost everyone recognises the problem. A recent study by the US Federal Reserve Bank of Dallas found that while higher rates since 2021 had made life tougher for home buyers, affordability would have been even worse if rates hadn't risen because housing prices would have risen more. Since the turn of the century, lower interest rates have allowed home buyers …

House prices continue to rise despite higher interest rates, inflation and cost of living
9 months, 3 weeks ago

House prices continue to rise despite higher interest rates, inflation and cost of living

ABC  

In short: Home values rose 0.6 per cent in February, with increases in every capital city except Hobart, according to CoreLogic. Home values rose 0.6 per cent in February, with increases in every capital city except Hobart, according to CoreLogic. "It's pretty unusual for economic conditions to be so weak but the housing market showing this really strong trend," CoreLogic's …

Is this the 'magic' mortgage rate that will kickstart the housing market? Fascinating study reveals rate that could finally spur the majority of aspiring homeowners into buying
9 months, 3 weeks ago

Is this the 'magic' mortgage rate that will kickstart the housing market? Fascinating study reveals rate that could finally spur the majority of aspiring homeowners into buying

Daily Mail  

After the Federal Reserve started lifting interest rates in March 2022, mortgage rates followed suit - and home sales have faltered since. Fixed 30-year mortgage rates are now hovering around 6.9 percent after reaching a 22-year high of 7.8 percent in October, according to Government-backed lender Freddie Mac. Some 72 percent out of 5,000 potential home buyers said they pulling …

Home sales rose in January as easing mortgage rates, more homes for sale enticed homebuyers
10 months ago

Home sales rose in January as easing mortgage rates, more homes for sale enticed homebuyers

Associated Press  

LOS ANGELES — Sales of previously occupied U.S. homes rose in January as homebuyers were encouraged by easing mortgage rates and a modest pickup in properties on the market. Existing home sales rose 3.1% last month from December to a seasonally adjusted annual rate of 4 million, the National Association of Realtors said Thursday. “While home sales remain sizably lower …

Don't wait to buy a home! Shark Tank star Barbara Corcoran warns first-time buyers they are 'dead wrong' if they wait for interest rates to keep falling - as she predicts mortgages will NEVER return t
1 year ago

Don't wait to buy a home! Shark Tank star Barbara Corcoran warns first-time buyers they are 'dead wrong' if they wait for interest rates to keep falling - as she predicts mortgages will NEVER return t

Daily Mail  

She warned that interest rates would never return to their historic lows Corcoran said rate drops would create a rush in the market - pushing up prices Shark Tank star Barbara Corcoran has warned first-time buyers not to wait any longer to purchase a home - even as mortgage rates finally start to fall. Rates on home loans have dropped …

High interest rates is hurting one more industry: Mortgage lenders
1 year, 1 month ago

High interest rates is hurting one more industry: Mortgage lenders

Al Jazeera  

Mortgage brokers, who rely on commissions, are struggling as their income has dipped as home buyers move to cash. That’s because potential homebuyers are waiting for interest rates to start coming down – meaning prospective clients for mortgage lenders like Clark are in holding patterns of sorts. That’s seven percent higher than this time last year “One way to avoid …

In the US, higher interest rates are forcing people to cut back
1 year, 1 month ago

In the US, higher interest rates are forcing people to cut back

Al Jazeera  

Americans are feeling pinch of high interest rates, forcing them to hold off purchases of homes, cars, even groceries. We’re trying not to have debt hanging over us, so we’ve cut back on doing things together as a family.” Elsamadicy is one of the hundreds of thousands of Americans feeling the pinch of the United States Federal Reserve’s aggressive push …

Home sales fell again in September as surging mortgage rates, rising prices discouraged homebuyers
1 year, 2 months ago

Home sales fell again in September as surging mortgage rates, rising prices discouraged homebuyers

Associated Press  

LOS ANGELES — Sales of previously occupied U.S. homes in September fell for the fourth month in a row, grinding to their slowest pace in more than a decade as prospective homebuyers grapple with surging mortgage rates and a near historic-low level of properties on the market. Existing home sales fell 2% last month from August to a seasonally adjusted …

Rising long-term interest rates are posing the latest threat to a US economic ‘soft landing’
1 year, 2 months ago

Rising long-term interest rates are posing the latest threat to a US economic ‘soft landing’

Associated Press  

WASHINGTON — Surging interest rates are intensifying the challenges for the U.S. economy and threatening to derail the Federal Reserve’s drive to tame inflation without causing a deep recession. The jump in longer-term rates coincides with other threats, from higher gas prices and this week’s resumption of student loan payments to autoworkers’ ongoing strike and the risk of a government …

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff
1 year, 2 months ago

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff

ABC  

A "slight uptick" in inflation is unlikely to see the Reserve Bank lift rates at its October meeting, but more than half a million households facing the looming fixed-rate mortgage cliff are being warned to brace for higher repayments. Key points: An increase in August inflation data is unlikely to see the RBA lift rates next week but it could …

America’s astonishing economic growth goes up another gear
1 year, 3 months ago

America’s astonishing economic growth goes up another gear

Hindustan Times  

The energizer bunny, a pink mechanical hare that keeps banging its drum owing to long-lasting batteries, will celebrate its 35th anniversary this October. Recent data suggest it may even be on track for annualised growth of nearly 6% in the third quarter, a pace it has hit only a few times since 2000. The Federal Reserve’s branch in Atlanta uses …

Mortgage rates reach their highest rate in more than 20 YEARS - here's what it means for new home buyers
1 year, 4 months ago

Mortgage rates reach their highest rate in more than 20 YEARS - here's what it means for new home buyers

Daily Mail  

Are YOU worried about rising mortgage rates? Get in touch: [email protected] Home buyers are facing their highest mortgage rates since 2002, as experts warn higher loans could pour cold water on the property market. Home buyers are facing their highest mortgage rates since 2002, as experts warn higher loans the property market to a screeching halt Over the course of …

Millennials powered America’s homeownership boom
1 year, 4 months ago

Millennials powered America’s homeownership boom

CNN  

Washington CNN — Prior to the pandemic, Yue and Chris Parsons were, like many Millennials, reluctant renters moving from one apartment to another, wondering when they would be able to buy a home of their own. I think we’re never leaving.” Homeownership rate is up, fueled by young buyers The homeownership rate grew overall during the pandemic, but it was …

Mortgage rates climb toward 7% after America’s credit rating was downgraded
1 year, 4 months ago

Mortgage rates climb toward 7% after America’s credit rating was downgraded

CNN  

Washington, DC CNN — US mortgage rates jumped this week, climbing closer to 7%. “The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s chief economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.” The average …

US home sales fell again in January; prices edged higher
1 year, 10 months ago

US home sales fell again in January; prices edged higher

Associated Press  

LOS ANGELES — The nation’s housing slump dragged on into January as home sales fell for the 12th consecutive month to the slowest pace in more than a dozen years. The National Association of Realtors said Tuesday that existing U.S. home sales fell to a seasonally adjusted annual rate of 4 million properties last month. The modest monthly sales drop …

Home buyers get some relief as mortgage rates come off 7% highs
2 years ago

Home buyers get some relief as mortgage rates come off 7% highs

LA Times  

A home for sale in the Mission Hills area of Los Angeles in October. “There’s a good chance we have seen the top” in mortgage rates, said Keith Gumbinger, vice president of research firm HSH.com. Home prices have declined recently — about 6% from May in Los Angeles County — largely because higher rates have sapped people’s buying power. If …

What’s bad news for the economy may be good news for house prices
2 years, 1 month ago

What’s bad news for the economy may be good news for house prices

The Independent  

What’s bad news for the economy may turn out to be good news for borrowers – and for house prices. When the Bank of England increased interest rates to 3 per cent earlier this month, there was a market expectation that the peak rate would be 4.5 per cent or even 5 per cent next year. The implications for mortgage …

Americans sour on homeownership: just one in five says they could easily buy a home
2 years, 1 month ago

Americans sour on homeownership: just one in five says they could easily buy a home

Daily Mail  

Only one in five Americans say they would be able to buy a home in the coming years without much difficulty — the latest sign of a turbulent property market, high mortgage rates and fears of economic malaise. ‘But high prices driven by a persistent lack of supply have a large share of would-be homeowners doubtful of their ability to …

US mortgage rates top 7% for the first time in 2 decades
2 years, 1 month ago

US mortgage rates top 7% for the first time in 2 decades

Associated Press  

WASHINGTON — The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve’s aggressive rate hikes intended to tame the nation’s stubbornly high inflation. Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time …

Mortgage rates top 7% for the first time since 2002, chilling L.A. housing market
2 years, 1 month ago

Mortgage rates top 7% for the first time since 2002, chilling L.A. housing market

LA Times  

Real estate agent Skyler Hines, right, speaks with visitor during open house in the Arlington Heights neighborhood of Los Angeles. The cost of buying a home took another leap this week as the average rate on the popular 30-year fixed-rate mortgage surpassed 7% for the first time since 2002. California Rising mortgage rates are sending home prices lower After a …

Average long-term US mortgage rates up another quarter point
2 years, 2 months ago

Average long-term US mortgage rates up another quarter point

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates reached their highest level in more than two decades this week and are likely to climb further as the Federal Reserve has all but promised more rate increases in its battle to tamp down persistent inflation. Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.92% …

Mortgage rates rise to nearly 6.3%, the highest level since 2008
2 years, 3 months ago

Mortgage rates rise to nearly 6.3%, the highest level since 2008

CNN  

Mortgage rates jumped higher for the fifth week in a row, further pushing past 6% in the face of yet another aggressive interest rate hike by the Federal Reserve. “The housing market continues to face headwinds as mortgage rates increase again this week,” said Sam Khater, Freddie Mac’s chief economist. “For housing markets, higher borrowing costs are the very remedy …

US home sales slipped, prices grew more slowly in August
2 years, 3 months ago

US home sales slipped, prices grew more slowly in August

Associated Press  

Sales of previously occupied U.S. homes slowed in August for the seventh month in a row, as sharply higher mortgage rates and rising prices made homebuying less affordable, further cooling the once red-hot housing market. The National Association of Realtors said Wednesday that existing home sales fell 0.4% last month from July to a seasonally adjusted annual rate of 4.80 …

More interest rate rises ahead but pace of increase set to slow, RBA governor says
2 years, 3 months ago

More interest rate rises ahead but pace of increase set to slow, RBA governor says

ABC  

Reserve Bank governor Philip Lowe says he will keep lifting interest rates but the pace will soon slow down and he is confident the economy can absorb the rises. Key points: RBA governor Philip Lowe warns of more rate rises ahead, but they may be smaller increases Mr Lowe said it would not surprise him if property prices fell 10 …

Mortgage rates hit 6%, first time since 2008 housing crash
2 years, 3 months ago

Mortgage rates hit 6%, first time since 2008 housing crash

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates climbed over 6% this week for the first time since the housing crash of 2008, threatening to sideline even more homebuyers from a rapidly cooling housing market. The long-term average rate has more than doubled since a year ago and is the highest it’s been since November of 2008, just after the housing …

US mortgage rates hit 6% for first time since 2008 housing crisis
2 years, 3 months ago

US mortgage rates hit 6% for first time since 2008 housing crisis

Al Jazeera  

Average long-term United States mortgage rates climbed above 6 percent this week for the first time since the housing crash of 2008, threatening to sideline even more homebuyers from a rapidly cooling housing market. The long-term average rate has more than doubled since a year ago and is the highest it has been since November 2008, just after the housing …

Average US long-term mortgage rates rise; 30-year at 5.55%
2 years, 3 months ago

Average US long-term mortgage rates rise; 30-year at 5.55%

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates rose this week as inflation worries remained at the fore and the slowdown in economic growth weighs on the housing market. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate increased to 5.55% from 5.13% last week. Rapidly rising interest rates — which add hundreds of dollars to monthly mortgage payments — …

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments
2 years, 4 months ago

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments

ABC  

While some Australians may rejoice at the idea of a drop in house prices, interest rate rises mean home owners face the prospect of their asset dropping in value at the same time their mortgage repayments steadily increase. Key points: House prices in Australia are dropping at their fastest pace since the global financial crisis Those who bought houses at …

Interest rate rises will see property prices fall further as maximum home loan sizes shrink
2 years, 4 months ago

Interest rate rises will see property prices fall further as maximum home loan sizes shrink

ABC  

Property prices may be dropping but that doesn't mean that wannabe home owners are suddenly celebrating. Key points: The Reserve Bank is set to hike the cash rate again today Banks are already winding back mortgage limits as interest rates and inflation rise Mortgage brokers say a 'feedback loop' is emerging in the property market Lenders are simultaneously winding back …

Five things to know about the next US housing crisis
2 years, 5 months ago

Five things to know about the next US housing crisis

Al Jazeera  

High home prices, scarcity and global uncertainty may be the perfect recipe for a United States housing crisis, economists tell Al Jazeera. “We’re seeing listings stay on the market a little longer than a year ago, even six months ago.” Inflation, a bear market on Wall Street after the S&P 500 dropped 20 percent, free-falling cryptocurrencies, war in Ukraine, and …

Home sales give way as prices enter unprecedented territory
2 years, 6 months ago

Home sales give way as prices enter unprecedented territory

Associated Press  

Sales of previously occupied U.S. homes slowed for the fourth consecutive month as climbing mortgage rates and record high prices discouraged house hunters. Existing home sales fell 3.4% last month from April to a seasonally adjusted annual rate of 5.41 million, the National Association of Realtors said Tuesday. The housing market, a crucial part of the economy, is slowing as …

Mortgage rates jump again, buyers head to the sideline
2 years, 6 months ago

Mortgage rates jump again, buyers head to the sideline

Associated Press  

WASHINGTON — Average long-term U.S. mortgage rates jumped back up ahead of next week’s Federal Reserve meeting where it’s expected to announce another big increase to its main borrowing rate. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate jumped to 5.23% this week from 5.09% last week. “The material decline in purchase activity, combined with the rising supply …

Re/Max CEO: Home prices can’t keep up double-digit gains
2 years, 7 months ago

Re/Max CEO: Home prices can’t keep up double-digit gains

Associated Press  

LOS ANGELES — The U.S. housing market is slowing as would-be buyers struggle with rising borrowing costs and a persistent shortage of properties for sale. Previously occupied home sales fell in February and March as mortgage rates shot up, crimping homebuyers’ purchasing power during the annual spring homebuying season. Nick Bailey, president and CEO of Re/Max, a global network of …

Home sales tumble again as mortgage rates surge
2 years, 7 months ago

Home sales tumble again as mortgage rates surge

Associated Press  

Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared to new highs. Existing home sales fell 2.4% last month from March to a seasonally adjusted annual rate of 5.61 million, the National Association of Realtors said Thursday. Fierce competition for …

Higher rates and lower growth: Tough times ahead for whoever wins election with not just housing on the line
2 years, 7 months ago

Higher rates and lower growth: Tough times ahead for whoever wins election with not just housing on the line

ABC  

It was a sober reminder of just who calls the shots. Having lured hundreds of thousands of new homebuyers into the market with assurances right up until last Christmas that interest rates would be on hold until 2024, the RBA's messaging now is to prepare for a series of rate hikes this year. With declines of around 15 per cent …

Business Highlights: Wall Street dive, worker shortage
2 years, 7 months ago

Business Highlights: Wall Street dive, worker shortage

Associated Press  

___ Stocks slump 3% as worries grow over higher interest rates NEW YORK — Stocks closed sharply lower on Wall Street as worries grow in markets that the higher interest rates the Federal Reserve is using in its fight against inflation will derail the economy. ___ Rising interest rates in US will hinder foreign economies WASHINGTON — When the Federal …

Rising interest rates in US will hinder foreign economies
2 years, 7 months ago

Rising interest rates in US will hinder foreign economies

Associated Press  

WASHINGTON — When the Federal Reserve raises interest rates — as it did Wednesday — the impact doesn’t stop with U.S. homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans. “It will put pressure on all types of developing countries,’’ said Eric LeCompte, executive director of the Jubilee USA Network, a coalition of groups seeking …

The RBA will raise interest rates — but not to the alarming levels the experts are predicting
2 years, 7 months ago

The RBA will raise interest rates — but not to the alarming levels the experts are predicting

ABC  

A week ago, barely anyone was talking about a pre-election interest rate hike. It is this: The RBA really doesn't want to raise interest rates — at least not to anywhere near the levels many now believe are inevitable. But during the past 30 years, the RBA — in association with the banking regulator, the Australian Prudential Regulatory Authority — …

Americans will feel the impact as Fed raises rates. Here's what you should know
2 years, 9 months ago

Americans will feel the impact as Fed raises rates. Here's what you should know

NPR  

Americans will feel the impact as Fed raises rates. Sponsor Message "It starts to push it from, like, 'we could maybe make it work' to the point where you're just like, 'it's not worth it,' " says Zach Gubran of Fort Collins, Colorado. "Higher mortgage rates may be helpful in cooling the housing market," says Selma Hepp, an economist with …

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