Real estate credit: rates become dissuasive for Americans

How high will he climb? The 30-year interest rate on mortgages exceeded 7% on Tuesday in the United States. It was around 6% before the Fed announced a sharp hike in its key rates last week. And a year ago, it was less than 3%. This rapid rise weighs on the purchasing power of Americans, creating a risk of breakdown of the real estate market in the United States, after a phase of overheating.

In August, the volume of transactions fell for the seventh month in a row, according to the National Association of Realtors . Although limited compared to July, the decline is pronounced over one year: it is close to 20%. “The softness in sales reflects the escalation in borrowing rates this year. Nevertheless, the owners are doing well, with almost no disposals following a default, and prices even higher than a year ago,” put the association’s chief economist, Lawrence Yun, into perspective. communicated.