January 17, 2025
2KUTV recently published an article featuring Keith Munsell, Master Lecturer of Strategy and Innovation, discussing how higher interest rates have worsened the affordability crisis in the housing market.
Rising mortgage rates, escalating home prices, higher property taxes, and surging home insurance premiums have made owning a home more difficult than ever. Home sales are at their lowest in 20 years, with 2024 expected to see the weakest sales since 1995. Economists predict that rates will remain volatile in 2025, driven by inflation and ongoing economic uncertainties.
“For those people who are hoping the interest rates are going to come back down to the low single digits, I think they’re going to be waiting forever. I don’t think that’s happening,” Munsell adds.
With many homeowners holding on to low pandemic-era mortgage rates, housing supply remains limited, contributing to sustained high prices.