Soaring Interest Rates Crushing Home Sale Agreements

The smoke from a fire in a forest area approaches houses at the Cacau Pirera District in Iranduba, Amazonas state, Brazil on September 25, 2023. The Government of Amazonas declared a State of Environmental Emergency on September 12 due to the high number of fires and a strong drought in the rivers, affecting navigation and food distribution to the interior of the state. (Photo by Michael DANTAS / AFP) (Photo by MICHAEL DANTAS/AFP via Getty Images)
(Photo by MICHAEL DANTAS/AFP via Getty Images)

OAN’s Daniel Baldwin
10:30 AM – Monday, October 23, 2023

New data from Redfin has revealed that more than 16% of home-purchase agreements were canceled in September 2023. This is the highest number since October 2022. This number comes as the 30-year fixed mortgage hit 8% for the first time since the year of 2000.


“The reason why the Fed is increasing interest rates, as they say, is because they’re spending so much money and the Fed has to increase their Fed funds rate to drive down inflation,” said Bob Rubin, the founder and president of Rubin Wealth Advisors. “When you increase those Fed funds rates, well guess what? You’re increasing mortgage rates.”

About 53,000 home sales were canceled, according to data from Redfin. By comparison, the 30-year mortgage rate was 2.65% in January 2021 when former President Donald Trump left office. Rubin argues that flipping the White House in 2024 is the best antidote to these soaring interest rates.

“I would have to say that electing a fiscally conservative Republican as the next POTUS is vital to restoring economic stability, reducing government intervention, and promoting policies that prioritize the prosperity of the American people,” Rubin told One America News.

According to Yahoo Finance, the median U.S. home price jumped by 106,392 in the third quarter of 2023 from the same time in 2019.

“Biden’s economic policies have led to runaway spending and record high mortgage rates,” Rubin said. “They’re causing significant financial strain on the average hardworking America.”

Homeowners now must earn $114,627 to afford a median-priced home in the U.S., according to Redfin. The median family income in the U.S. was less than $75,000 in 2022, per the US Census Bureau.

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