Mortgage Rates Close to 8% as Economy Refuses to Cool
Inflation and economic growth… Regardless of our thoughts on the underlying reasons, these two factors have played a key role in skyrocketing rates over the past few years. The Fed won’t signal an end to its “higher for longer” rate policies until it sees lower inflation combined with a cooler economy.
Today’s Retail Sales data, albeit for the month of September, says the economy is anything but cooler. In fact, there were broad-based gains in all of the biggest sectors of the report. It was also the 3rd month in a row that inflation-adjusted Retail Sales were in positive territory and each month has been stronger than the last in that regard.
64% of Americans would welcome a recession if it meant lower mortgage rates
Buying a home has become so unaffordable that most prospective homebuyers wouldn’t mind a recession if it meant lower mortgage rates, according to a new survey.
Sixty-four percent of Americans say they are “ready for a recession” if they are better able to afford to buy a home, according to a study conducted by Harris Poll on behalf of Credit Karma, designed exclusively for USA TODAY.
As homebuyers grapple with near 7% mortgage rates and home prices continue to hold firm due to a lack of inventory, the picture is looking grim for those looking to buy a home.
Not surprisingly, 82% of those surveyed believe the country is facing an unprecedented housing affordability crisis. Perhaps that’s why more than 3 in 5 Americans who have never purchased a home (61%) don’t think they’ll ever be able to afford to do so.