Housing Market Cools as Mortgage Rates Soar to 6.9%, Home Sales Decline, as Affordability Crisis Hits Housing Market

The housing market has cooled again recently after a brief period of heating up in early 2024. Mortgage rates have surged to an average of 6.9% for 30-year fixed loans, rebounding from late 2023 declines. Home sales have declined, with a 10% drop in mortgage-purchase applications from the previous week, according to the Mortgage Bankers Association. High prices and rates have created an affordability problem not seen in decades, cooling buying activity in the housing sector.