30-year mortgage rates just hit 7.45% — highest since April 2024.
This matters even if you're not buying a house. Higher mortgage rates mean:
• Less consumer spending power (bigger monthly payments)
• Slower housing market activity
• Less home equity extraction
• Pressure on homebuilders and related stocks
When borrowing costs rise this fast, it ripples through the entire economy. Watch retail, home improvement, and consumer discretionary sectors closely.
People who locked in 3% rates during 2020-2021 aren't moving. That frozen housing supply keeps upward pressure on prices even as rates climb.
The gap between what people pay now versus what they could refinance to keeps widening. That's a real drag on household budgets and spending flexibility going forward.
This matters even if you're not buying a house. Higher mortgage rates mean:
• Less consumer spending power (bigger monthly payments)
• Slower housing market activity
• Less home equity extraction
• Pressure on homebuilders and related stocks
When borrowing costs rise this fast, it ripples through the entire economy. Watch retail, home improvement, and consumer discretionary sectors closely.
People who locked in 3% rates during 2020-2021 aren't moving. That frozen housing supply keeps upward pressure on prices even as rates climb.
The gap between what people pay now versus what they could refinance to keeps widening. That's a real drag on household budgets and spending flexibility going forward.
