first‑time home buyers

Fed Holds Interest Rates Steady As Iran War Stokes Inflation And Clouds Outlook — Photo by Robert So on Pexels

Interest Rates Are Overrated - Mortgage Affordability Falls

Mortgage affordability is falling even though the Federal Reserve has kept its policy rate steady. In 2024, first-time home buyers saw a 1.7-percentage-point surge in mortgage rates, widening the gap between what borrowers can afford and the cost of credit. This trend is amplified by war-driven inflation that erodes