Sharp Uptick In Home Prices, Mortgage Rates Are Acting As Deterrents For Buyers and Investors - Cushman & Wakefield (NYSE:CWK), Newmark Group (NASDAQ:NMRK)

The U.S. housing market indicated signs of stress as a sharp uptick in mortgage rates and high home prices discouraged potential buyers and investors, the Financial Times reports.
Low-interest rates and tight supply in the U.S. housing market drove record growth in home prices during the pandemic. The S&P CoreLogic Case-Shiller National Home Price Index rose 19.2% year on year in January.
Average interest rates for a 30-year fixed-rate mortgage in the U.S. swung to 4.42% after hitting a record low of 2.65% in January 2021, marking a two-decade record,
The average monthly payment on new mortgages jumped 25% in February, Y/Y, and accounted for a larger share of the typical person’s income.
Higher home prices combined with higher mortgage rates made homeownership less affordable than ever since the financial crisis, an expert admitted.
Investors now sought long-term cash flows concerned with rental properties and were more likely to start deploying capital elsewhere as the Fed raised interest rates.