Mortgage Rates Near 7%, Crushing US Home Buyers and Housing Market

US home buyers are facing new challenges as mortgage rates near 7%. The average rate for a 30-year mortgage is expected to rise again, according to Freddie Mac's latest snapshot. This increase comes on top of expectations of higher inflation due to surging oil prices, which has pushed up long-term bond yields that influence mortgage rates.

The Federal Reserve's decision to raise its key interest rate has also contributed to the rising mortgage rates. As a result, the housing market may slow down further this year. Luxury homes are already under construction in some areas, but for many home shoppers, relief from rising mortgage rates may be elusive.