Published by FOX Business | March 27, 2023
Austin, Texas, was the fastest-cooling market over the past year.
Tech hubs are becoming some of the fastest-cooling housing markets in the U.S.
These hubs and pandemic hot spots have been hit hard as turmoil persists in the sector and housing costs remain elevated, according to a new Redfin report.
Austin, Texas, was the fastest-cooling market over the past year as the Federal Reserve hiked interest rates, which pumped up mortgage rates, in order to ease inflation.
Mortgage Buyer Freddie Mac reported that the average rate on a 30-year fixed mortgage slipped to 6.42% last week. That’s down from the week prior when the average rate was 6.6%. However, a year ago, the average was 4.42%.
Other markets cooling rapidly include Seattle, Phoenix and Tacoma, Washington, as well as Denver, according to Redfin data.
Hannah Jones, an economic data analyst at Realtor.com, told FOX Business that “affordability concerns weigh especially heavy in high-priced tech hubs.”
“Demand in these areas has waned in recent months as buyers are constrained by still-high prices and elevated mortgage rates,” Jones said, adding that “these concerns may worsen as recent tech layoffs ripple through the market, making potential buyers employed in the tech sector feel less secure about taking on a house payment.”
