As home financing costs have skyrocketed, cash is king again. Nearly one in 10 new homes in the third quarter were purchased with cash, according to Census Bureau data, the highest share since 2014.
One big reason: Housing finance costs have risen at a rate not seen in decades as the Federal Reserve raised interest rates in an effort to curb inflation. The average rate for a 30-year fixed rate mortgage has more than doubled to around 7% this year. This added at least $800 to monthly costs for a $500,000 home purchase.
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