Mortgage Rates Soar to New Highs, Slamming Door on Homeownership

The average interest rate on a 30-year fixed mortgage has soared to 7.2%, its highest in a year and a half, making homeownership increasingly difficult for millions of Americans.

Coupled with record-high home prices, the situation is daunting for many would-be buyers, including Alexandra DeCandia and her husband Edward Schrom, who are searching for their first home in the Washington area. 'We don't want to buy this big, beautiful house only to just sit in it, staring at each other, stressing about a mortgage payment every month,' said DeCandia.

Mortgage rates have been rising since the U.S. and Israel attacked Iran on February 28th, influenced by the yield on 10-year Treasury bonds, which has been increasing due to soaring oil prices and inflation. The Federal Reserve's decision to hike its key interest rate this week suggests that mortgage rates may continue to rise.

The median age of a first-time homebuyer is now 40, an all-time high, according to the National Association of Realtors. Many young adults are being priced out of the market or opting to delay their purchasing decisions due to the current economic conditions.