Overview

• The average rate for a 30-year fixed mortgage increased to 6.32% this week, up from 6.12% last week.
• Factors influencing the rate hike include strong job growth and shifts in market expectations, despite a robust economy.
• The Federal Reserve's recent interest rate cuts had previously led to a decline in mortgage rates, but current rates remain below the peak of 7.22% seen in May 2024.
• High mortgage rates continue to exacerbate affordability issues in the housing market, with home prices remaining near all-time highs.
• Future rate cuts by the Federal Reserve are anticipated, which could gradually lower borrowing costs for homebuyers.