Sky-High Mortgage Rates Could Sucker-Punch US Consumers

Luke Suddards

about 2 months ago1:15 min

Sky-High Mortgage Rates Could Sucker-Punch US Consumers

The US consumer is being treated like one of Mike Tyson’s punching bags at the moment, taking hit after hit from elevated price pressures and suffering a serious cost of living squeeze. And now it looks like the knockout blow might have arrived in the form of soaring housing costs. The average cost of a 30-year, fixed loan was 6.7% – increasing from 6.29% just a week ago. That takes mortgage rates back to levels last seen in 2007. The housing market is clearly feeling the chill already and this isn’t even expected to be the peak: with the Federal Reserve on an anti-inflation crusade, rates above 7% are now being projected.

Google search trends are also showing an anxious consumer: search interest for “real estate market crash” has exploded by north of 200%, setting a new record in Google

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