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.

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.