Rates are still doing the opposite of what homebuyers want
The average rate on a 30-year fixed mortgage jumped 7 basis points on Tuesday to 6.75%, the highest level since July. If you were hoping for a little relief before house-hunting season, the mortgage market has other plans.
The housing market’s weird little split-screen
Here’s the twist: pending home sales rose in April both month over month and versus a year ago, according to the National Association of Realtors. So while borrowing costs are getting more expensive, buyers haven’t completely tapped out. That said, higher rates can still crimp affordability and make every monthly payment feel like it’s wearing a tiny backpack full of bricks.
Why investors should still care
Mortgage rates ripple through more than just real estate agents’ coffee budgets. They can influence:
- homebuilder demand
- refinancing activity
- consumer spending power
- broader housing-related inflation readings
Big picture: the housing market is still standing, but at 6.75%, it’s definitely not skipping around in sneakers.