5 sources·Business

Average Mortgage Rates Climb to 7% Dominating Housing Market Concerns

The average rate on 30-year mortgages in the U.S. reached 7.04%, raising affordability issues for potential homebuyers and prolonging the housing slump.

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The rising mortgage rates, coupled with a persistently limited housing supply, are creating a perfect storm that is making homeownership increasingly unattainable for many Americans.
Mortgage rates top 7%, soar to highest level since May in latest blow to homebuyers
New York Post·3M
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
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Leans Right
This outlet slightly leans right.
The upward trajectory of mortgage rates is compounding the challenges faced by prospective homebuyers, creating a somber outlook for the housing market as it braces for potentially its worst sales year in nearly three decades.
Average rate on 30-year mortgage hits 7%, its fifth straight increase and highest level since May
Boston Herald·3M
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
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Leans Right
This outlet slightly leans right.
The continued rise in mortgage rates is casting a long shadow over the housing market, making home ownership increasingly elusive for many Americans.
Average rate on 30-year mortgage hits 7%, its fifth straight increase
ABC News·3M
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
The continuous rise in mortgage rates signals a troubling trend for the housing market, with the potential for a bleak year ahead as borrowing costs deter homebuyers and exacerbate the ongoing sales slump.
Average rate on 30-year mortgage hits 7% after 5th straight increase, now highest level since May
Associated Press·3M
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
The persistent rise in mortgage rates, now exceeding 7%, underscores the growing challenges facing the housing market amid an otherwise robust economic backdrop.
Mortgage rates rise above 7% for first time since May
Fox Business·3M
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
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Leans Right
This outlet slightly leans right.

Updated: Jan 16th, 2025, 3:42 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

The average rate on a 30-year mortgage has increased to 7.04%, marking the highest level since May 2024 and contributing to a slowdown in home sales. This trend, coupled with increased borrowing costs on 15-year fixed mortgages (now at 6.27%), reflects rising bond yields and economic conditions. The Federal Reserve's cautious approach to rate cuts, due to high inflation, adds to buyer frustrations. Economists predict sustained high rates could continue affecting affordability in the housing market, which is experiencing limited inventory and rising prices.

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