Roubini Macro Associates Chair Nouriel Roubini discusses the mounting challenges for the U.S. and global economy.rapidly rising mortgage ratesIn October, just 16% of consumers said they feel that now is a good time to buy a home, according to a monthly survey by Fannie Mae. The marks the lowest percentage since the survey's inception in 2011.
Americans are also increasingly alarmed about the prospect of selling a home: The share of respondents who think it's a good time to sell fell from 59% to 51%. "Consumers are increasingly pessimistic about both homebuying and home-selling conditions," Doug Duncan, the chief economist at Fannie Mae, said in a statement.
US Federal Reserve Chair Jerome Powell speaks during a news conference on interest rates, the economy and monetary policy actions, at the Federal Reserve Building in Washington, DC, June 15, 2022. Combined with high home prices, the rapid rise in borrowing costs has pushed many entry-level homebuyers out of the market.
With many homes in the $500,000 range today and interest at 7% or higher, that is $35,000 a year just for interest excluding taxes, utilities, and paying the principal. Depending on the area, that easily could be $4,000+ a month in payments. Very few Americans can afford that!