Homebuyers Struggle as Mortgage Rates Hit Highest Level Since 2000

To afford a median-priced home, a buyer’s annual income must now be 50 percent higher compared to the early pandemic period.

More than 90 percent of homebuyers today say they found their home online. Andrey_Popov/Shutterstock

High mortgage rates are keeping homebuyers away from the market, with home sales this year expected to hit the lowest level since 2008.

For the week ended Oct. 20, the 30-year fixed mortgage rate hit 7.9 percent, “the highest since 2000,” said Joel Kan, vice president at Mortgage Bankers Association. Mortgage rates have risen for “seven consecutive weeks,” which has had a massive negative effect on homebuyer demand, he said.