Mortgage interest rates continue skyrocketing, nearing the consumer inflation rate as home sales collapse

30-year mortgage interest rates continued skyrocketing to an average 6.94 percent on a national basis the week of Oct. 10, according to the latest data by Freddie Mac, nearing the consumer inflation rate reported by the Bureau of Labor Statistics.

As the U.S. economy continues overheating, existing home sales have also collapsed 27.4 percent since Jan. 2022 to 4.7 million annualized, according to National Association of Realtors (NAR) data. This collapse in demand almost certainly is a recession signal, and mirrors 2007 and 2008 collapses annually of existing home sales of 22 percent and 18 percent, respectively, as home sales fell from their 2005 high of more than 7 million to just 4.1 million by 2008.

The housing recession is here. And it explains why inflation consumes your money before you have a chance to spending, thereby lowering real spending. As housing prices have gone to the moon — median home prices are up 15.1 percent compared to a year ago according to Department of Housing and Urban Development data — banks have also demanded much higher interest rates, curtailing demand.