As of 9/22, the 30-Year Fixed Rate averaged 6.36%. This is up from a low around 2.8% at the start of 2021. This has a substantial impact on the buyer’s budget as this translates to an increase of roughly $500 in the monthly payment on a $250,000 home.
While many buyers quickly (and understandably) calibrated their expectations based on the lower interest rates, the current interest rates are not abnormal in the context of historical trends.
The fact remains though that rates are running at a 14-year high, which is inevitably one of the main forces driving the cooling in the market
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