Skip to content

US housing crisis? 30-year fixed mortgage rates prepare to soar higher

US housing crisis? 30-year fixed mortgage rates prepare to soar higher

Amid mounting warnings of the looming financial depression and real estate crash, the average fixed interest rate on 30-year mortgages has continued to increase as it follows a steady upward trend and threatens to intensify further, endangering the housing market.

Indeed, the cryptocurrency market analyst CryptoKaleo has noted that the 30-year fixed mortgage rates in the United States were growing and looked “ready to send even higher,” according to the chart pattern analysis shared in a tweet on June 7.

Fixed 30-year mortgage rates in last 5 years. Source: CryptoKaleo

Mortgage rates growth

At the same time, a chart by the financial advisory firm Bankrate has shown that the national US average for 30-year mortgage rates has continued to grow this week and stood at 6.91% as of June 7. By comparison, on June 8, 2022, the 30-year mortgage rates amounted to 5.36%, whereas one year before that, on June 9, 2021, they were at 3.13%, according to Bankrate’s national survey of large lenders.

US national average for 30-year mortgages. Source: Bankrate

According to Greg McBride, Bankrate’s chief financial analyst, the Federal Reserve’s aggressive rate hiking in an attempt to curb inflation had not directly affected fixed mortgage rates. Specifically, as he explained:

“Mortgage rates don’t take direct cues from the Fed and will instead respond to the outlook for the economy and inflation. A slowing economy and an easing of inflation pressures are the prerequisites for lower mortgage rates.”

Interestingly, Robert Kiyosaki, a prominent investor and author of the best-selling personal finance book ‘Rich Dad, Poor Dad,’ expects the worst real estate market crash in the country’s history, arguing that office towers in San Francisco have lost 70% of their value since 2019, and urging his followers to invest in gold, silver, and Bitcoin (BTC).

Earlier, in late May, Finbold reported on the US home sale prices witnessing their largest decline since 2012, as record-high mortgage rates weighed on homebuyer demand, and April accounted for the third consecutive month of home price declines after a decade of increases.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

Related posts