Overview

• Moody's downgraded U.S. sovereign debt from AAA to Aa1, driving a surge in mortgage rates tied to Treasury yields.
• The average 30-year fixed mortgage rate hit 7.07%, its highest level in five weeks, with refinance rates rising to 7.25%.
• Housing affordability continues to worsen, with elevated rates and record-high home prices locking out many first-time buyers.
• Regional disparities persist, with the lowest 30-year mortgage rates ranging from 6.84% to 7.05% in states like New York, California, and Texas.
• The Federal Reserve’s past rate hikes and the ongoing tight inventory contribute to sustained pressure on the housing market.