Navigating the 21-year high in US mortgage rates: What homebuyers should expect

Mortgage rates have reached a 21-year high, with the rate for a 30-year fixed-rate mortgage climbing to 7.09 percent. This increase has made home buying more expensive, deterring potential buyers and leading to a decrease in housing supply. The rise in mortgage rates is attributed to the Federal Reserve's approach to monetary policy, including interest rate hikes to combat inflation. Experts predict that rates may gradually decrease throughout 2024, but it will take time to return to the record-low rates seen during the pandemic.