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US housing market faces K-shaped divide as mortgage rates rise
Rising mortgage rates are creating a ‘K-shaped’ divide in the United States housing market, where high-income earners continue to drive transactions while lower-income buyers face increasing affordability barriers.
According to data from Freddie Mac, the average 30-year fixed mortgage rate reached 7.4% this week, a notable increase from the 6.27% average recorded during the same period last year. This surge, combined with rising home prices and limited inventory, has intensified pressure on the market.
Oscar Munoz, head of US economics at TD Securities, noted that high-income consumers are currently the primary group driving housing transactions due to their ability to absorb costs. Conversely, lower-income Americans are struggling to keep pace with the rising cost of living and interest rates. Data commissioned by Morning Consult further indicates a growing divergence in homebuying intentions between different income brackets.
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What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Data shows a growing divergence in homebuying intentions between different income groups. kioncentralcoast.com
- [● 3 SOURCES] The average 30-year fixed mortgage rate reached 7.4% this week. abc17news.com · kioncentralcoast.com · kvia.com
- [● 3 SOURCES] High-income consumers are the primary group driving housing market transactions. abc17news.com · kioncentralcoast.com · kvia.com
- [● 3 SOURCES] The average 30-year fixed mortgage rate was 6.27% during the same period last year. abc17news.com · kioncentralcoast.com · kvia.com