A deteriorating US economic climate is causing mortgage rates to surge, placing significant strain on American homeowners. Google searches for “help with mortgage” have reached record highs, a level previously seen during the 2008 financial crisis. Data shows new home sales have collapsed, falling 17.6% monthly to their lowest level since 2022, while a survey indicates nearly half of Americans are struggling to afford their housing payments.
The deteriorating US economic crisis is now wounding the housing domain, as amplified mortgage rates take a toll on American budgeting. Google searches for “help with mortgage” have hit a record high, a level that peaked during the 2008 financial crisis. A survey outlined by The Kobeissi Letter states 49% of Americans are struggling to pay rent or mortgage, with 67% of Generation Z unable to afford rising rates.
Demand in the US housing market is collapsing according to further data. US new home sales fell 17.6% month-over-month in January to 587,000 units, the lowest since 2022 and the largest monthly drop since July 2013. This marks the worst annual decline in three years, with sales falling 11.3% year-over-year.
Meanwhile, mortgage rates have jumped 33 basis points over the last two weeks to 6.43%, the highest since September. This represents the largest two-week increase in nearly a year. Higher interest rates are back, as stated in the report, signaling new twists in the housing domain.
