Mortgage Rates Inch Close to 7%

US mortgage rates rose for the third consecutive week, reaching 6.96%, just below the 7% threshold. The combination of elevated rates and low housing inventory has led to decreased affordability and a slowdown in homebuying activity. The Federal Reserve's reliance on jobs and inflation data, along with rising inflation rates, has contributed to the sustained high mortgage rates. Borrowing costs are expected to remain elevated until the Fed signals a halt in interest rate hikes. Mortgage rates are currently higher than historical trends suggest, and homebuyers are feeling the squeeze of higher rates and low inventory.