Mortgage Rates Fluctuate: A Weekly Update

Mortgage rates have remained above 7% for the third consecutive week, making it difficult for many homebuyers to afford a mortgage. While rates have slightly declined this week, they are still prohibitively high. The combination of elevated rates and the end of the traditional homebuying season has slowed down buyer demand. Home prices have also risen due to solid demand and limited inventory. Reluctant homeowners, who have lower mortgage rates, are hesitant to sell their homes and enter the market. As a result, new construction has become a popular option for buyers, with builders offering incentives such as mortgage rate buydowns. The future direction of mortgage rates remains uncertain, with the Federal Reserve's decision on interest rate hikes in September likely to have an impact.