And the rates just keep climbing. This week, the average mortgage rate officially hit 8 percent in the U.S., marking the highest rate seen in 23 years. The news comes as mortgage applications decreased 6.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
Compared to the pandemic lows, mortgage rates have more than doubled from an average of 3.72% in January 2020. Not making the situation any easier for today’s buyer, median home prices have also jumped 26 percent since 2020.
The National Association of Realtors expects 30-year fixed mortgage rates to fall to 6 percent by the end of 2024, while other groups including the MBA and National Home Builders Association anticipates rates to fall somewhere in the 6-7 percent range next year.