Rising Mortgage Rates Challenge U.S. Housing Market Recovery

Higher borrowing costs and limited home supply strain affordability, while policy shifts under President-elect Trump aim to address the crisis.

Mortgage rates have surged to an average of 6.91% for 30-year fixed loans, nearing July highs and limiting affordability for many buyers.
Home prices remain elevated, with the average price up over a third since 2019, compounding challenges for first-time buyers.
President-elect Donald Trump has pledged to reduce housing costs by cutting regulatory barriers and increasing home construction, though these plans face criticism and logistical hurdles.
Housing construction remains sluggish, with single-family home starts down 6.9% last month, though permits for new builds have slightly increased.
Federal Reserve interest rate cuts are unlikely to significantly lower mortgage rates in the near term, further pressuring the market.