Economist: Mortgage Rates Hurt Buyers More Than Home Prices

Mortgage rates were back on the rise last week, hitting an average of 5.55 percent, according to Freddie Mac. Rates are nearly double what they were a year ago, and the latest housing data from NAR demonstrates the impact of the jump in borrowing costs.

According to NAR Chief Economist Lawrence Yun, “The nation is witnessing a “housing recession.” Existing home sales and contract signings are down and there’s been a significant pullback in the new-home market—sales in the sector were down 30 percent annually in July—causing homebuilder sentiment to slide for the eighth straight month.

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