The combination of spiraling home prices and the Federal Reserve’s campaign to lower inflation by hiking its benchmark interest rate means house hunters who need a mortgage have to weigh a much larger payment. In fact, the typical mortgage payment has ballooned so much since the ultra-low mortgage rates we saw during the pandemic that many would-be homebuyers are giving up on buying. Fortunately, that’s a trend that may eventually ease the pace of price increases, analysts say. (Although our lender data data only goes back to 2020, other measures of rates suggest we last saw the 30-year mortgage as expensive as its recent high back in 2009.) Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
