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Mortgage Rates Hit 7%: Housing Market Faces Crisis

1/13/2025

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Summary

Story summary

The average 30-year fixed mortgage rate exceeds 7%, marking a six-month high and a 15% decline in applications year-over-year.
Rising rates stem from strong economic data and inflation concerns, with volatility anticipated around the January 20 presidential inauguration.
High rates, a housing shortage, and home prices averaging $429,963 are rendering the market increasingly unaffordable.
Experts advise improving credit, saving for larger down payments, and comparing lenders before purchasing a home.

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Story summary

The average 30-year fixed mortgage rate exceeds 7%, marking a six-month high and a 15% decline in applications year-over-year.
Rising rates stem from strong economic data and inflation concerns, with volatility anticipated around the January 20 presidential inauguration.
High rates, a housing shortage, and home prices averaging $429,963 are rendering the market increasingly unaffordable.
Experts advise improving credit, saving for larger down payments, and comparing lenders before purchasing a home.