The current mortgage rate is just under 6% for a 30-year term, according to data from Freddie Mac. The last time the mortgage rate was reaching these levels was in 2008.
Freddie Mac comments that “Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year.”
Adding that “The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales.”
Redfin’s chief economist Daryl Fairweather says “Mortgage rates near 6% have put a big chill on demand for homes,”.
“With home prices still at record highs, the affordability crisis has been dialed up to an 11 out of 10. Home sellers are aware of this as well; a record share are dropping their asking price. Even though there are fewer home sales, prices have not declined any significant amount yet. But if the housing market continues to cool, prices could fall in 2023.
Additionally, Redfin says that “Home tours, offers and other requests for agents’ help, as measured by The Redfin Homebuyer Demand Index, posted their largest annual decline in over two years.”