Navigating Higher Than Average Interest Rates In Real Estate
In late January 2024, four U.S. Senators, specifically Elizabeth Warren, John Hickenlooper, Jacky Rosen, and Sheldon Whitehouse, sent a letter to U.S. Federal Reserve Chairman Jerome Powell urging him to reduce interest rates. "As the Fed is weighing its next actions in the coming year, we encourage you to take into consideration the implications of this interest rate decision in the housing market," they wrote. "The direct consequence of these rates has resulted in a significant rise in the total cost of buying a home for consumers on average," they added. It is estimated that the U.S. housing market is almost frozen, with only people who need to sell or buy and move to another location for various personal reasons. While mortgage rates at the beginning of January fell a little to about 6.7 percent, the average rate soared to 7.8 percent in the middle of October 2023. In November 2020, the rate was about 2.7 0.7%, and that's a difference of 5%. The issue is th