Posted 10/31/2023, 2:44:00 PM
Rising Mortgage Rates Threaten Housing Market, Echoing 1980s Downturn
- Mortgage rates spiking to nearly 8% will cause homebuying to plummet, per Wells Fargo
- Higher rates echo 1980s when Fed hikes also pressured housing market
- Average 30-year fixed mortgage has climbed from under 4% to just shy of 8% since March 2022
- In 1980s, rates as high as 19% prompted desperate pleas from homebuilders to lower rates
- Nearly every part of housing activity has declined recently as rates breach 7%