The Federal Reserve launched another 0.75 percentage points rate hike last week and has indicated further hikes ahead until the relentless inflation shows signs of slowing down. Amid the Fed’s hawkish stance, rising mortgage rates and inflation are causing the housing demand to plunge, forcing home prices to cool down. Moreover, home price gains slowed at the fastest pace on record in June.
According to the Mortgage Bankers Association, mortgage demand fell more than 6% in July, hitting the lowest level since 2000. Moreover, a survey revealed that homebuilders witnessed a record 9.3% cancellations in May.
