30-year mortgage rate just hit 7.26% — highest since May 2024.
This matters because housing affordability was already stretched thin. Higher rates mean:
• Monthly payments climb even if home prices flatten
• Fewer buyers can qualify
• Existing homeowners stay locked in their sub-4% mortgages
• Housing inventory stays tight
We're back in that zone where rates act as a brake on the entire housing market. Homebuilders, mortgage lenders, and home improvement retailers all feel this.
If you're waiting for rates to drop before buying, you're not alone. Problem is, so is everyone else — and that pent-up demand could flood back the moment rates ease.
This matters because housing affordability was already stretched thin. Higher rates mean:
• Monthly payments climb even if home prices flatten
• Fewer buyers can qualify
• Existing homeowners stay locked in their sub-4% mortgages
• Housing inventory stays tight
We're back in that zone where rates act as a brake on the entire housing market. Homebuilders, mortgage lenders, and home improvement retailers all feel this.
If you're waiting for rates to drop before buying, you're not alone. Problem is, so is everyone else — and that pent-up demand could flood back the moment rates ease.
