The Fed went ahead with a second consecutive 75 bps interest rate hike yesterday as it tries to bring down the soaring inflation. While markets await another hike in September, rising home prices and higher mortgage rates have created an “affordability ceiling,” especially for first-time buyers.
According to the National Association of Realtors, signed contracts to purchase existing homes dropped 20% year-over-year in June. Moreover, home builder sentiment slipped 12 points to a record low of 55 this month, hitting the lowest level since the onset of the pandemic.
