Mortgage rates exceeded 7% for the first time since May 2022, with 30-year fixed rates reaching 7.12% the week of September 18, driven by elevated Treasury yields amid inflation concerns. Higher borrowing costs are straining housing affordability as buyers increasingly turn to riskier adjustable-rate mortgages offering lower initial rates.
Young Europeans are increasingly unable to afford homeownership compared to previous generations, with rates declining across most EU countries due to rising house prices, higher borrowing costs, and stagnant wage growth. OECD data shows homeownership among 30-year-olds dropped significantly since the mid-1990s, with Ireland experiencing the steepest decline from 81% to 53%.