15 September 2023
Housing affordability is in crisis according to a Redfin report, with record deal collapses in August due to skyrocketing mortgage rates and home prices. About 15.7% of home contracts were terminated, the most since mortgage rates surpassed 7% in 2022. High costs are causing homebuyers to abandon deals, with the average 30-year-fixed mortgage rate at 7.27% and monthly payments 20% higher than last year. With housing affordability at historic lows, experts predict prolonged high mortgage rates and reduced housing supply, trapping homeowners.