Mortgage rates have skyrocketed to 23-year highs, along with surging food, fuel and new car prices. On top of that, it's become more expensive to pay back debt in a world of higher interest rates.
But surging borrowing costs aren't solely driving up costs for consumers. Supply shortages from extreme weather conditions and strategic oil production cuts have also boosted food and gas prices. US mortgage rate are at 23-year highs "The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week," Freddie Mac said. A surprise rating cut by Fitch last week saw a jump in bond yields.
Not only are elevated mortgage rates squeezing homeowners, but also homebuyers. Higher borrowing costs have limited the amount of homeowners looking to sell, given they feel like they're locked into their current low-mortgage rate. That's squeezed the supply of homes available for sale on the market, driving up prices for those looking to buy a property for the first time. In recent months, drivers have enjoyed the lowest gas prices since the Ukraine war broke out.