With the Federal Reserve’s dramatic interest rate hikes hitting the sector hard, this year’s Fintech 50 list honors only two real estate startups, down from five in 2022.
Since the Federal Reserve began driving up interest rates in March 2022, the average for new 30-year fixed rate mortgages has risen by 81% to 6.79%. To put that in perspective, the average U.S. home buyer is now committing to a monthly housing payment of $2,651, up $350 from a year ago, according to real estate brokerage Redfin. The costly mortgage rates, combined with a scant number of homes for sale, have reduced the sales of existing homes–down 23% this past April from a year earlier, according to the National Association of Realtors. Mortgage refinancing applications, meanwhile, have been decimated– down by more than half from a year ago in late May, according to Fannie Mae.
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