SEPTEMBER 27, 2025 – I posted in 2023 and 2024 that people can easily afford 7% mortgage rates. Except for about 6 months, 30-year mortgage rates have been between 6% and 7% since 2022. During this 4-year timeframe (prorating through the end of 2025). about 20 million new and existing homes have been sold. Yes, this is down a bit from the 4 prior years. However, 2020 and 2021 were an anomaly due to mass moving after the pandemic. People buy a monthly payment. As I predicted, the public would simply adjust their expectations and buy what they can afford at a 7% interest rate. For some perspective, this rate is nothing compared to a credit card statement I recently received stating their APR is 34.9%!!!!!! I thought there were laws against absurdly high interest rates???
Side note….The market has the Fed Funds Rate at 3.9%-4.0%. Not much change since the Fed lowered the rate last week.
Shalom,
The Mann