The housing comeback is running into a familiar roadblock. Mortgage rates are closing in on 7%, threatening a recovery already strained by record home prices and shaky confidence. Michael Fratantoni of the Mortgage Bankers Association says crossing that threshold could send more buyers to the sidelines before they sign a contract or apply for a loan.
- HousingWire said mortgage rates ended the week at 7.12%, while pending sales trailed 2025 levels during tougher comparisons pending sales trailed.
- MarketWatch reported Freddie Mac’s 30-year average reached 6.71%, and Jim Bell expects it to touch 7% in September.
The waiting game: Higher borrowing costs could sideline buyers who spent months waiting for relief, leaving sellers to cut prices or delay listings while builders lean on rate buydowns to keep deals moving. As Zillow economist Kara Ng put it, “The math for the rest of the year is going to be very challenging.” All eyes now turn to the Fed, where this week’s decision could ease pressure on Treasury yields or keep the housing market stuck in neutral.