Apollo Global Management examines how high mortgage rates are dragging on U.S. housing demand even as supply adjusts more gradually. Affordability remains severely stretched, monthly payments on a new 30 year mortgage are about $2,665, and the market looks stuck between weak demand and limited inventory relief.
US Housing Outlook: Higher mortgage rates not helpful
Apollo
Torsten Slok
Research
127 Pages
Key Takeaways
Affordability Remains Crushed: Average monthly payments on a new 30 year mortgage reached about $2,665, helping keep affordability near record lows and buyer traffic weak.
Demand Is Shifting: 33% of Americans say they would rent if they were going to move, while 38% say it is a bad time to buy.
Supply Is Not Collapsing: Apollo says the current housing starts decline is milder than prior slowdowns, with 2022 tracking above the deep drawdowns seen in 1972, 1981, and 2006.
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