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.
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.
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.