Mortgage Rates at 8% Make a Brutal Housing Market

Bloomberg: “Over the past two months, rates for 30-year mortgages have hurtled toward 8% by most measures. Affordability pressures are cutting into sales, with purchases of previously owned homes in September dropping to the lowest level since 2010.”

“It’s been a tough slog for house hunters since the start of the pandemic. After lockdowns started to lift, fierce competition fueled bidding wars and massive price increases. Then came rising rates that sidelined potential buyers, while owners also became more reluctant to sell. Inventory plunged, keeping prices elevated.”