Posted 1/8/2024, 10:12:00 PM
Mortgage Rates Soar to 1980s Highs, Slamming Brakes on Housing Market
- Mortgage rates in 2023 soared like the 1980s due to Fed rate hikes, severely reducing affordability
- Home sales activity has slowed to lows not seen since the fallout of the 2008 Global Financial Crisis
- Unlike 2008, home prices haven't crashed even though sales are down
- There are some signs conditions could improve in 2024 like moderating inflation and falling mortgage rates
- But affordability will still be a major challenge for homebuyers compared to the recent past