Mortgage boom or bust cycles are nothing new. But what’s different about our current marketplace involves the degree of fluctuation we’ve seen in the last few years. A recent Visual Capitalist infographic clearly illustrates the industry’s epic shifts and hints at the challenges ahead.
Key findings include:
• The U.S. 30-year fixed-rate mortgage reached its highest level since 2002. In 2021, 30-year fixed-rate mortgages accounted for 70% of market share nationwide.
• U.S. housing affordability is at its lowest point since 1989 – an issue compounded by rising home rates and limited housing inventory.
• In the last few years, 30-year fixed-rate mortgages hit their lowest point in U.S. history – 2.65% in January 2021 – before skyrocketing to their current rate of 7.31% (October 3, 2023).
For complete details, view the infographic here: “Charted: The U.S. Mortgage Rate Vs. Existing Home Sales.”