Infotech

Soaring interest rates for home loans in the United States



Posted Apr 3, 2022, 12:10 PMUpdated on Apr 3, 2022, 12:13 PM

Home loan rates are soaring in the United States. The thirty-year fixed rate loan – the most popular product – has been trading on average at 4.67% in recent days, according to Freddie Mac, one of the big players in mortgages. This is 1.5 points more than at the start of the year, and the strongest acceleration observed in the space of a quarter for more than thirty years. “In March, for a median-priced home, the monthly payment for a 30-year fixed mortgage increased by more than $170,” notes Nadia Evangelou, economist at NAR, which federates real estate agents.

Two years of pandemic and a period of low rates have transformed the American real estate market: there are half as many houses for sale on the market and prices have risen by a third, notes the research firm Redfin. The consequence of households in search of greenery, and a shortage of houses. In terms of new construction, access to property is also constrained by an inflation of building materials and longer lead times.

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