30-year mortgage rates are at 20+ year highs

This chart shows the 30-year mortgage rate. How important is this chart? Why does it matter? Well, to people like me, potential new home buyers, it's hard to overstate just how important this chart is.

I have to understand it.

If you already have a home at a low interest rate, congrats! Lucky you.

But for those searching the market, it's time to pay close attention, as it exerts a significant influence on various aspects of the housing market and individual financial decisions.

First and foremost, it directly impacts the price of houses. When mortgage rates are low, prospective homebuyers can afford larger loans, which drives up demand and, subsequently, home prices. Conversely, when rates rise, borrowing becomes more expensive, which can cool down demand and put downward pressure on housing prices.

Furthermore, the 30-year mortgage rate plays a pivotal role in determining what individuals can afford. A higher interest rate translates to higher monthly mortgage payments, potentially limiting the purchasing power of potential buyers. This has ripple effects across the entire economy, even equity and crypto markets as now people have less and less to invest. The endless bid dries up a tad.

To get the point... I'm watching this chart closely. It's currently at 20+ year highs. And it could go even higher. Let's watch this closely.