Housing Market Chills as Mortgage Rates, Prices Scare Buyers
Updated: Aug 1, 2022
July 21, 2022 | apnews.com
The Federal Reserve has aggressively raised short-term interest rates to fight inflation, which in turn helps push rates higher for credit cards, auto loans and mortgages. Rising mortgage rates have combined with already high home prices to discourage would-be buyers. Mortgage applications have declined sharply. Sales of previously occupied homes have fallen for five straight months, during what is generally the busiest time of year in real estate.
NJ SEED: Rising interest rates and inflated prices for houses always combine to slow the home buying market. Usually these adjustments result in a return to balance.