Overview

• The average 30-year fixed mortgage rate held at 6.99% this week, nearing the 7% mark after steady increases over the past three months.
• Economists attribute rising mortgage rates to factors like Federal Reserve policies, bond market trends, and lender competition, despite three Fed rate cuts in late 2024.
• Higher rates have led to reduced buyer activity, with monthly payments for a $400,000 loan now averaging nearly $2,700, excluding taxes and insurance.
• Limited housing supply, driven by seller reluctance to list properties with lower locked-in rates, continues to constrain options for buyers.
• Experts predict gradual rate moderation and increased housing inventory later in 2025, potentially improving conditions for buyers and sellers alike.