# Interest Rate Hike Effects

> Mortgage rates hit 6.75% as Fed hikes rates.
- Title: Interest Rate Hike Effects · CBS News | Shortify
- Summary: Mortgage rates hit 6.75% as Fed hikes rates. Rising mortgage rates and home prices make housing unaffordable for many Americans.
- Keywords: mortgage rates, fed, interest rate hike, housing affordability, home prices, us government, 10 year treasury, news, Interest, Rate, Hike, Effects
- Source: CBS News — https://cbsnews.com/video/how-an-interest-rate-hike-impacts-you
- Read time: 1 min
- Topics: mortgage rates, fed, interest rate hike, housing affordability, home prices, us government, 10 year treasury, 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
## Key takeaway

Rising mortgage rates and home prices make housing unaffordable for many Americans.