Housing market is least affordable this century

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The housing market continues to struggle under the weight of record high borrowing costs.

. Construction of new homes has declined while sellers of previously owned homes are holding back as they are reluctant to do away with properties that they may have acquired during an environment of low rates.

Mortgage rates have soared as the Federal Reserve hiked rates to a two-decade high of the current level of 5.25 to 5.5 percent to battle inflation. Policymakers from the central bank have also indicated thatNAR suggested that the Fed may need to take a pause in its rate moves, especially as the policy environment may hit the rental market too.

The souring interest in home buying was felt across the country, the NAR said. Sales in pending homes fell in all four U.S. regions in August from last month and also compared to one year ago.

 

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