The US housing market is bracing for a tough period after mortgage rates rose at the fastest rate in decades.
- The average for a 30-year loan was 5.10%, slightly lower than 5.11% last week. The 30-year average has increased nearly two percentage points from the end of last year.
- Even though the extra costs are pushing out prospective buyers, competition remains fierce, driving up prices.
- With low inventories, sales are starting to stall. A measure of contracts to purchase initially owned homes fell in March for a fifth straight month, hitting the lowest level since May 2020.
The last period mortgage rates were this high, the median sales price of an existing U.S. home stood at $172,300. Today, it’s more than double that, after rising to a record $375,300 last month.
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