Buyers face challenges in the tight housing market
Mortgage rates in the US soared for the second week in a row, reaching their highest level in three weeks, as reported by Bloomberg. The average rate for a 30-year fixed loan rose to 6.9%, up from last week’s 6.81%, according to Freddie Mac.
Read more: How are mortgage rates calculated?
Prospective buyers are grappling with a tough housing market in various parts of the US. Mortgage rates have been hovering near 7% in recent weeks, while housing prices continue to inch higher due to limited inventory.
Fitch Ratings has recently downgraded US government debt, leading to higher yields on Treasuries, marking fresh highs for 2023. Meanwhile, the latest payroll data indicates strength in the economy.
The mix of rising mortgage rates, escalating housing prices, and ongoing economic fluctuations poses challenges for those seeking to buy homes, particularly for first-time homebuyers attempting to break into the housing market.
“The combination of upbeat economic data and the US government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, chief economist at Freddie Mac, as quoted by Bloomberg.
