Mortgage Rates Rise Amid Persistent Home Affordability Challenges
The average 30-year mortgage rate increased by 2 basis points to 6.24%, marking the second consecutive week of gains after four weeks of declines. Freddie Mac's Thursday report highlights the ongoing strain on homebuyers as median sales prices remain NEAR record highs.
Pending home sales fell 0.3% in early November, the first drop in four months, with properties taking a median of 49 days to go under contract—the slowest pace since 2019. Redfin agents note buyers are holding out for lower rates or prices before committing.
Potential relief may come if anticipated Fed rate cuts pull down Treasury yields, which mortgage rates closely follow. However, a 2.4% annual jump in median home prices—the sharpest increase in half a year—continues to squeeze affordability.
