Mortgage Rates Hit 23-Year High, Crushing Housing Market and Buyer Demand

Mortgage rates moved closer to 8% this week, sustaining levels not seen in 23 years and crushing buyer hopes.

Rates are likely to remain high as markets bet the Fed will keep rates higher for longer, doubling monthly payments since pre-COVID.

Buyer demand dropped sharply, with purchase applications down 21% from last year as more turn to adjustable rate mortgages.

High rates also cause low inventory, as most homeowners have sub-5% rates and won't sell into near 8% rates.

Lock-in effect of low rates keeps Americans from moving, with inventory in September at lowest levels since 1982.