Mortgage Rates Rise, Home Sales Decline

Mortgage rates in the U.S. have risen again, with the average rate for a 30-year fixed mortgage reaching 6.84% as of November 21, up from 6.78% the previous week. This marks the highest level since July and is significantly lower than the 7.29% average from a year ago. The increase in rates, driven by factors including inflation concerns, is impacting homebuyers' purchasing power, particularly as home prices remain high. Despite the challenging market conditions, there was a slight increase in mortgage applications, with purchases up 2% compared to the previous year. The housing market is experiencing a mixed response, with some optimism among Republicans regarding home buying post-election, while Democrats show more reluctance. Overall, the direction of mortgage rates will be crucial for the housing market's performance in the coming months.