US Mortgage Rates Hit 7.5%, Highest in Nearly 3 Years as Home Sales Plunge
AM730 · 1 SOURCESabout 2 hours ago2 MIN
Summary
US mortgage rates have climbed to 7.5%, the highest level since November 2023, deal a severe blow to the housing market. The Mortgage Bankers Association (MBA) Purchase Index fell 4% for six consecutive weeks, marking the longest losing streak since July-August 2023. Pending home sales have plummeted to their lowest levels in nearly 12 years, with 14.5% of purchase contracts terminating — a record high on Redfin's database. Industry observers warn that fewer buyers can qualify for loans as rates continue climbing.
Key Points
- The 30-year fixed mortgage rate reached 7.5%, the highest since November 2023, according to MBA data
- MBA's Purchase Index dropped 4% for six straight weeks, the longest decline since mid-2023
- Pending home sales fell 4% month-over-month in September, the steepest drop in over three years
- Contract terminations surged to 14.5%, the highest percentage since Redfin began tracking the metric
- All 50 major metropolitan areas tracked by Redfin saw pending sales decline, the first nationwide drop since September 2023
Why It Matters
The US housing market freeze could have ripple effects on global property investment flows, particularly for Hong Kong buyers seeking overseas properties. With mortgage costs at historic highs, demand for international real estate from Hong Kong investors may further contract, affecting developers and agents specializing in overseas property sales. The record contract termination rate signals deep buyer hesitation, which could dampen construction activity and related economic sectors in the coming quarters .
The US housing market freeze could have ripple effects on global property investment flows, particularly for Hong Kong buyers seeking overseas properties. With mortgage costs at historic highs, demand for international real estate from Hong Kong investors may further contract, affecting developers and agents specializing in overseas property sales. The record contract termination rate signals deep buyer hesitation, which could dampen construction activity and related economic sectors in the coming quarters .