Rent prices followed a similar trajectory in the second quarter, with the average monthly payment for an apartment rising 9.4% in the three months ended June 30, year-over-year, according to the real estate data company CoStar, cited by Wall Street. Log. This compares to increases of more than 11% recorded in the previous two quarters.
The cooling housing market reflects weakness in the broader economy, as potential buyers find themselves unable or unwilling to cope with rising inflation, which is at its highest level in 40 years.
Mortgage rates have risen steadily since the Federal Reserve began raising benchmark interest rates in March, as part of its plan to contain soaring costs by making borrowing more expensive. This dramatically increased the monthly payment a homebuyer would pay for a given property, making everything less affordable. At the same time, a struggling stock market has squeezed the resources of many homebuyers, making it difficult to save for a down payment.
This is a developing story and will be updated.