Does Anyone Know Why The Internet Rates for America's Housing Is At The High Rate of 7 Percent?

[sage2021]

This is one of the reasons why people can't afford housing. 🏡
What would happen if interest rates were lower? Would that make inflation worse?
Also the high prices of home insurance has gone through the roof because almost every state is either in a high fire area, flood area, hurricane 🌀 area, etc. In California some house insurance is $18,000/year because of the fires there.
I bought my house with a 3.2 interest rate, and there was no inflation.
Anyone who can explain this I welcome your opinion.
Thank you❣️

Updates

10 mo

The housing market changed rapidly during COVID but that was around 5 years ago. I don't understand why a pandemic that is clearly over with has anything to do with people not being able to afford to buy a house 🏡 in 2025. What's up with this?

Updates

10 mo

*****CORRECTION******INTERNET SHOULD SAY INTEREST RATES. Thank you stupid smart phone 🤳🏼

[Gwendoline]

Because so much value in held property. There are people and companies that own thousands of homes and a drop in property prices means a loss to them. So property prisces are artificially inflated to discourage ordinary people owning their own home. Companies were for years allowed to build homes in places they shouldn't.

Then there is property taxes. If you bought and own your home in an area a few decades ago that is now seen as exclusive and valuable on the property market you could find that even though you own your own home outright and have done for years that you are being squeezed by over extortionate property taxes and if you can't pay they seize your house and sell it. This is happening on a log of places all over in the US, Mexico, Spain, Italy. You see those anti tourist protests in places, that is really what they are about. Basically its legal theft.

[midnightmoon05]

7% sounds about right.

it was 10-12% before… I heard… then rates started to come down. Even my brother was dreaming about rates coming down and told my mom to buy… 😂… so our parents bought with rates around 7%…. They paid off their house within 7 years. They live comfortably with no mortgages.
they love this opportunity being in America.
elsewhere, people pay 50% tax and work as slaves.

[Syntosi]

While I dont know the actual reasons, a major issue with housing right now is that corporations are buying up all the good properties on the market. If you make loans cheaper then they are just going to take more loans and buy more houses to rent out for profit or otherwise use for financial benefits.

As for home insurance? The main factor for the rising cost of home insurance is global warming. Simply put, the chances of something happening and the damage that results from it is higher than it used to be which means they have to rise insurance costs to compensate. I am not even sure most insurance companies offer hurricane or flooding insurance in places like Florida anymore because of this.

[Avicenna]

Mortgage rates are tied to the 10 year Treasury, so its market concern over government spending that is driving current rates. That said, the rates for years, but especially in 2020 and 2021 were deliberately kept low by Federal Reserve intervention in the bond market.

[exitseven]

The Federal Reserve raised interest rates in response to the inflationary spiral caused by the Biden administration. Now that inflation has lowered the fed is reluctant to lower interest rates to keep inflation from returning.

[Ariesman81]

The 3.2% interest rate you got was due to economic easing (market manipulation). Your low interest rate is what caused the spike in inflation. Cheap money just equates to increased home prices. If you remember, houses in 2020/2021 were going for 10% over list price. It didn't matter where you listed it at, there were so many people looking to get the rate.

[shortster]

Interest rates in America are typically tied to the prime rate set by the Fed.

[NathanDavis]

greed

[Terryrunnow]

Blame politics