Particle.news
Download on the App Store
6 ARTICLES
·
4mo ago

30-Year Mortgage Rates Exceed 7%, Highlighting Housing Market Struggles

Rates hit their highest levels since May, with affordability challenges persisting for buyers and renters alike.

In addition to elevated borrowing costs, homebuyers are also contending with home prices that are hovering at all-time highs.
Image
Image

Overview

  • The average 30-year fixed mortgage rate rose to 7.04% this week, marking the fifth consecutive weekly increase.
  • Elevated rates are driven by stubborn inflation and higher 10-year Treasury yields, despite recent Federal Reserve rate cuts.
  • Home prices remain near record highs, compounded by a national housing shortage of 3.7 million units, according to Freddie Mac.
  • First-time buyers and lower-income households face significant barriers to homeownership, particularly in high-cost metropolitan areas like New York and San Diego.
  • Economists predict mortgage rates will stay above 6% through 2026, limiting relief for prospective buyers and slowing new home construction.