The US housing market is experiencing turbulence as mortgage rates reach their highest levels in decades. According to the Federal Reserve, the average 30-year fixed mortgage rate now exceeds 7%, making homeownership increasingly unaffordable for middle-class families.
Housing prices remain high despite economic uncertainties, with supply shortages worsening the situation. Many potential buyers are being priced out, leading to a significant slowdown in sales.
Real estate analysts predict a possible market correction if interest rates remain elevated. “Sellers are hesitant to lower prices, while buyers can’t afford current rates. It’s a deadlock,” said housing economist Mark Zandi.
The Biden administration is exploring policies to stabilize the market, including incentives for first-time homebuyers and increased funding for affordable housing projects.
