As home-financing costs have skyrocketed, cash is king once again. Nearly one in 10 new homes in the third quarter were purchased with cash, according to Census Bureau data—the largest share since 2014.
A big reason: Home-financing costs have risen at a speed unseen in decades as the Federal Reserve has hiked interest rates in a bid to slow inflation. The average rate on a 30-year fixed-rate mortgage has more than doubled to about 7% this year. That has added at least $800 to monthly costs for a $500,000 home purchase.