In the first full week of the new year, the 30-year fixed-rate mortgage stayed elevated, just below 7%, continuing to challenge homebuyers amid high housing prices and limited inventory.
Economic resilience has kept upward pressure on mortgage rates, further straining affordability, particularly for first-time buyers. With home prices remaining high and entry-level housing in short supply, many prospective homeowners are finding it difficult to enter the market.
Experts note that the combination of rising borrowing costs and limited inventory is discouraging some potential buyers while pushing others to explore creative financing options or alternative housing markets.
Despite these challenges, the strong labor market and wage growth have provided some offset for buyers. Industry analysts will closely watch upcoming economic data and Federal Reserve actions to determine if relief in mortgage rates might be on the horizon.
For now, affordability remains a significant hurdle, and housing advocates continue to emphasize the need for policies that increase the availability of entry-level homes to help address the imbalance between supply and demand.
