Jan 16, 2025 - Business
Mortgage rates rise above 7% — a first since May
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Mortgage rates topped 7% for the first time since May 2024, according to Freddie Mac data out Thursday.
Why it matters: Elevated mortgage rates are sidelining many homebuyers and sellers.
- Further upticks threaten to keep the housing market in its slump.
Between the lines: Mortgage rates move in lockstep with the rate on 10-year Treasury bonds, which has climbed in recent months and is based on bond investors' outlook.
What's next: Forecasters expect mortgage rates to remain above 6% this year.
- "We're not going to see a big change in the affordability picture," Realtor.com chief economist Danielle Hale recently told Axios.
