30-Year Mortgage Rate Hits 8-Month High

Mortgage rates for 30-year loans in the U.S. have risen to 7.04%, marking the highest level in eight months and the first time surpassing 7% since May 2024, according to Freddie Mac. This increase, attributed to stronger than expected job growth and rising bond yields, adds to the financial burdens of prospective homebuyers already facing high home prices and limited inventory. The average rate has climbed for five consecutive weeks, indicating a continuing trend that complicates homeownership for many Americans. Despite the rising costs, experts suggest consumers can potentially save money by shopping around for different lender quotes. Additionally, while the housing market saw a slight uptick in existing-home sales recently, the latest rate surge may hinder overall sales activity moving forward. Economists anticipate that lower inflation could eventually lead to a gradual decrease in mortgage rates later this year.