Chart of the Week | September 20, 2021
30-year Mortgage Rate vs. Existing Home Sales
- Historically, existing home sales have an inverse relationship with the 30-year mortgage rate.
- As seen throughout the pandemic, cheaper borrowing costs (low mortgage rates) have supported the housing boom, pushing prices higher amid tight supply and high demand.
- The US mortgage rate has risen 10 basis points since last week (2.77% to 2.87%), potentially foreshadowing an imminent normalization to the housing market.