Mortgage Rates Spike Fuel Fastest Housing Market Slowdown On Record As Affordability Plummets

The Fed raising rates has caused the fastest housing market slowdown on record as home sales plummet.

Mortgage rates have spiked similarly to the late 1970s/early 80s when Volcker pushed rates into double digits.

With mortgage rates near 8%, a typical homebuyer now needs to earn 15% more than a year ago to afford a home.

The typical monthly mortgage payment has doubled since 2021, rising to $2,170 in August 2022.

Despite unaffordable mortgages, low inventory has kept home prices high, with the median price up 3.9% year-over-year.