Mortgage Rates Hover Near 7% Despite Market Fluctuations

The Federal Reserve's decision to hold rates steady keeps mortgage rates in a narrow range, with affordability challenges persisting for buyers.

The average 30-year fixed mortgage rate is 6.95%, slightly down from 6.96% last week, according to Freddie Mac data.
Refinance rates for 30-year mortgages average 7.03% nationally, with state-level variations ranging from 6.80% to 7.13%.
The Federal Reserve opted to hold the federal funds rate steady in its latest meeting, pausing further rate cuts to assess inflation trends.
Higher mortgage rates and limited housing supply continue to create affordability challenges, with housing contract activity falling 5.5% in December.
Experts suggest mortgage rates will likely remain within a narrow range in the near term, influenced by Treasury yields and lender competition.