"Surging Mortgage Rates Dampen Homebuyer Prospects"

Mortgage rates for the benchmark 30-year fixed mortgage climbed to 6.77% this week, up from 6.64% last week, while the rate on the 15-year fixed mortgage also increased to 6.12%. Home prices continued to climb, leading to a decrease in mortgage applications and causing homeowners to stay put due to the financial disincentive of higher rates. With a Federal Reserve interest rate cut unlikely in March, mortgage rates are expected to remain in the mid-6% range, potentially exacerbating the affordability crisis as buyer demand may increase without a material drop in rates.