From CBS News · · 1m 30s
Interest Rate Hike Effects
Mortgage rates hit 6.75% as Fed hikes rates.
In brief
Mortgage rates hit 6.75% as Fed hikes rates. Rising mortgage rates and home prices make housing unaffordable for many Americans. Originally reported by CBS News.
Mortgage rates tied to treasury
Mortgage rates are tied to the 10 year treasury which is at 5% or higher since 2007.
“the mortgage rates are tied to the 10 year treasury”
Current mortgage rates
30-year fixed mortgage rates are at 6.75% which is the highest since 2007.
“we're at about 6.75% for a 30-year fixed”
Housing affordability crisis
Housing affordability has worsened with home prices doubling in six years.
“six years ago you had to spend 28% of median income for a house”
Current home price burden
Today, home prices require 44% of median income for a house.
“today, that's 44%”
Housing affordability decline
Housing affordability has dropped from 28% to 44% of median income over six years.
“six years ago you had to spend 28% of median income for a house”
Housing affordability impact
The same house costs twice as much in monthly payments today as six years ago.
“today, you buy the same house costs you twice as much in your monthly”
Economic impact
The economy can withstand rate increases but housing affordability is very bad.
“the economy is strong enough to withstand a rate increase”
Housing affordability problem
Housing affordability is terrible due to both mortgage rates and home prices.
“it's not just mortgage rates, it's the price of houses”
Housing affordability trend
Home prices have doubled in six years since the pandemic began.
“if you go back just six years, ok, you can see that prices have gone up a lot, basically doubled”
Housing affordability comparison
Six years ago, a house cost 28% of median income; today it costs 44%.
“six years ago you had to spend 28% of median income for a house”
Housing affordability consequence
Housing affordability has become a major economic challenge for many Americans.
“it's a tough time for housing”
Mortgage rate impact
High mortgage rates keep people with low mortgage rates tied to their homes.
“it really keeps the people with low mortgage rates tied to their homes”
Housing affordability outlook
Housing affordability will remain a tough issue for the foreseeable future.
“tough times indeed”
The headline
Rising mortgage rates and home prices make housing unaffordable for many Americans.
