Mortgage Rates Near 7% Amid US Housing Market Struggles

The US housing market continues to struggle as mortgage rates near 7%. The weekly average rate on a 30-year fixed-rate home loan has been rising for months and reached its highest level in over 14 months at 6.76%, according to Freddie Mac.

Experts expect the average rate to rise again, possibly moving closer to 7% this week. Higher mortgage rates can add hundreds of dollars a month to borrowers' costs, limiting homebuyers’ purchasing power.

The housing market has been stuck in a rut this year due to rising borrowing costs, as mortgage rates have kept marching higher since the war between the U.S. and Iran began in late February.

Mortgage rates are influenced by inflation, Federal Reserve policy, and bond-market investors’ expectations for the economy, among other factors.