HIGH INTEREST RATES HAMPER HOUSING MARKET

High Interest Rates Hamper Housing Market Sep. 25, 2023 04:11 AM ETITB, XHB, NAIL, HOMZ, PKB, IYR, REZ, REM, RWR, VNQ, ICF, FRI, PSR, JRE, KBWY, SCHH, ROOF, MORT, REET, FREL, SRET, RSPR, XLRE, USRT, NURE, PPTY, SRVR, INDS, BBRE, NETL, RDOG, IVRA, REIT, FPRO, LMBS, VMBS, SPMB, JMBS, MBB, VABS, DEED, BKT, MBSD, MTGP, CMBS, JLS CME Group profile picture CME Group 3.5K Followers Summary Mortgage rates are at a two-decade high with the average 30-year fixed-rate mortgage climbing above 7%. A major difference between today and the period leading up to the global financial crisis is vacancy rates. Today, only 6.4% of rental properties are vacant, near their lowest since 1985, while owner-occupied properties have a record low vacancy of 0.7%. Stacked of Coins on table with percentage icon and Gray Background With Illustration Shows Increasing of Interest Rates / Financial Concept. Boy Wirat By Erik Norland Over the past 18 months, U.S. mortgage rates have soared from 2.9% to 7.6%, their highest since 2001. Will this tremendous increase in mortgage rates cause the U.S. housing market to crash like it did in 2008? On one hand, higher mortgages have led to a steady decrease in the number of new mortgages being issued. In recent weeks, the number of new mortgages has fallen to its lowest level since 1995. US Home Mortgage 30-Year Fixed National Average On the other hand, there is a major difference between today and the period leading up to the global financial crisis: vacancy rates. Mortgage Applications Vacancy rates are extremely low. Before the 2008 financial crisis, 10% of rental properties and 3% of owner-occupied properties were vacant. Today, only 6.4% of rental properties are vacant, near their lowest since 1985, while owner-occupied properties have a record-low vacancy of 0.7%. Vacancy Rates Home prices have stopped rising, but so far, they aren’t collapsing. Over the past year, the price of buying a home in the U.S. has fallen by about 1%, while rental costs have risen by around 8% as higher rates force many would-be buyers into the rental market. Original Post This article was written by CME Group profile picture CME Group 3.5K Followers As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy. CME Group offers the widest range of global benchmark products across all major asset classes also, offers exciting career opportunities in a variety of disciplines. We value being a good corporate citizen and take an active role in the communities where we work and live.Our Investor Relations page contains comprehensive investor relations information for CME Group shareholders. Take a closer look at CME Group's sponsorships with Saracens, the Blackhawks and others. Show more Like Share Comment Recommended For You High Yield Investor profile picture Retirement Passive Income Snowball: VYM May Be All You Need High Yield Investor Rida Morwa profile picture An Eye-Popping Fully Covered 19% Yield: OXLC Rida Morwa Bill Gunderson profile picture Interest Rates Will Determine The Nasdaq's Next Move Bill Gunderson Stony Chambers Asset Research profile picture Stocks In The Rearview: A Golden Outperformance Approaches Stony Chambers Asset Research Louis Navellier profile picture The Fed Signals Another Rate Increase In 2023 (And No Cuts) Louis Navellier Comments Newest Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us! Related Stocks Symbol Last Price % Chg ITB iShares U.S. Home Construction ETF 79.06 Post. 79.06 0.23% 0.00% XHB SPDR® S&P Homebuilders ETF 76.78 Post. 76.78 0.79% 0.00% NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares ETF 55.96 Post. 55.96 0.18% 0.00% HOMZ The Hoya Capital Housing ETF 35.88 Post. 35.89 0.17% 0.00% PKB Invesco Building & Construction ETF 50.51 Post. 50.51 0.34% 0.00% Related Analysis Splitting Size In U.S. Equities: S&P DJI Versus MSCI In H1 2023 Splitting Size In U.S. Equities: S&P DJI Versus MSCI In H1 2023 S&P Dow Jones Indices XHE: Earnings Surprise Edge, Do The Health Care Quants Have It Wrong? XHE: Earnings Surprise Edge, Do The Health Care Quants Have It Wrong? The Sunday Investor What's Driving Returns In Emerging Markets? What's Driving Returns In Emerging Markets? WisdomTree PPL: Still A 'Hold', Despite A Double-Digit Downturn PPL: Still A 'Hold', Despite A Double-Digit Downturn Wolf Report Cisco's $28 Bln Spelunking Yields Dicey Deal Cisco's $28 Bln Spelunking Yields Dicey Deal. https://nossairt.net/4/6368209 https://whulsaux.com/4/6368064