Housing Research Brief

Home ownership barriers exacerbated. The Federal Reserve’s September rate hike lifted the federal funds target range to 3.75 percent to 4.00 percent, with another hike possible if inflation persists. Meanwhile, the mean 30-year mortgage rate exceeded 7 percent in mid-September, further reducing purchasing power and reinforcing the lock-in effect among homeowners with lower-rate loans. As a result, home sales may be subdued and renter tenure could extend, boosting apartment demand as households delay homeownership.