Grant Cardone is speaking out about housing. The real estate mogul and entrepreneur took to Twitter with strong words on the subject. “The average rate on a 30-year fixed mortgage is 6.84% this week,” he tweeted, citing data from Freddie Mac. “The seventh weekly increase in the past eight weeks. If this continues, homeownership in America will be over.”
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Bold claim? Yes, but Cardone is not wrong about interest rates rising rapidly. Mortgage interest rates have been rising for months. They are at levels not seen in more than twenty years. For context, 30-year fixed mortgage rates averaged just 3% in 2021. Today it is more than double. That spike is a blow to potential home buyers. Monthly payments skyrocket and dreaming about a house feels like a pipe dream.
Cardone is known for his real estate empire and no-nonsense business advice. He has a long history of talking about housing. He has built his career around multifamily real estate. He also owns thousands of apartments across the US and has never been shy about saying that homeownership isn’t for everyone. But this time it’s different. He’s not just talking about the challenges of owning a home. He says rising interest rates could destroy the American dream altogether.
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He didn’t stop there. “America should have the best housing and lowest interest rates in the world,” he added. A big statement, but Cardone has a point. Higher rates don’t just hurt buyers. They percolate throughout the economy. Housing is a huge driver of growth. If people can’t buy, homebuilders will stop building and industries like construction and home goods will take a hit.
Cardone’s tweet reflects the frustration of many. Rising interest rates are making housing unaffordable for millions of people. In 2021, the average 30-year mortgage interest rate was 3%. A $300,000 mortgage at 3% costs about $1,265 per month. At the current rates? That same loan will get you over $2,000. That’s not a big change.
