US Homebuyers Face New Barriers as Mortgage Rates Near 7%

The US housing market is facing new hurdles 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 last week at 6.76%, according to Freddie Mac.

This week's snapshot is expected to show the average rate rose again, possibly moving closer to 7%. Other mortgage trackers have already shown the average rate on a 30-year mortgage rising to just below or above 7% in recent days.

Mortgage rates are influenced by inflation, Federal Reserve policy and bond-market investors' expectations for the economy. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.