Mortgage rates have climbed for the fifth week in a row, surpassing seven percent for the first time since May 2024. The robust economy is driving this rise in rates. Despite the upward trend, Freddie Mac research underscores that consumers can still save money by shopping around and obtaining quotes from multiple lenders. However, borrowers are losing more buying power due to these increasing rates.

According to Freddie Mac, this week, the 30-year fixed-rate rose 0.11 basis points, bringing the U.S. weekly average to 7.04%. One year ago, the rate was 6.60%.

Homebuyers should reassess their options and focus on making purchases within their budget.

As homebuyers face reduced purchasing power due to rising mortgage rates, it’s essential for those in the market to reassess and consider homes within their budget. While it may not be the dream home, it gets them into the market. Once interest rates drop, homeowners can leverage their equity and eventually move to their ideal home. Taking action now is crucial to avoid diminishing wealth.