Overview

• The average 30-year fixed mortgage rate has climbed to 7.09%, marking its fifth consecutive weekly increase.
• Despite the Federal Reserve's rate cuts, mortgage rates are rising due to persistent inflation concerns and higher Treasury yields.
• Mortgage applications for home purchases are down 2% year-over-year, while refinancing applications have risen by 22%, though volumes remain historically low.
• Limited housing supply and high prices continue to challenge prospective homebuyers, with more inventory attributed to longer market times rather than new listings.
• The upcoming Consumer Price Index report is expected to influence interest rate trends, with inflation projected to rise to 2.9% for December.