Rising Mortgage Rates: What it Means for Homebuyers

Fixed mortgage rates in the US have continued to rise, with the average rate for a 30-year fixed-rate mortgage reaching 7.57% this week. As a result, there has been a surge in demand for adjustable-rate mortgages (ARMs) as consumers seek relief from high monthly payments. The average contract interest rate for a 5/1 ARM fell to 6.33% this week. The housing market remains constrained by affordability issues, with purchase demand at a three-decade low. Many prospective homebuyers are opting to live with family or continue renting until they can afford to buy a home.