The Rollercoaster Ride of Mortgage Rates: Spikes and Sinks in 2023

Mortgage rates have increased to their highest level in seven months, with the average rate on a 30-year mortgage now at 6.91%. This rise in rates, coupled with rising home prices, is making homeownership more expensive. Only four US cities - Cleveland, Detroit, Houston, and Philadelphia - are currently cheaper to buy than rent. The housing market is also being impacted by low inventory, with fewer options for buyers due to construction companies struggling to keep up with demand and homeowners not listing their properties. Despite these challenges, homeownership in the US is on the rise, including for those with modest incomes.