Home loans are costing more

 Fox Business:

Mortgage rates reach highest level in over 20 years

The average rate for the benchmark 30-year fixed mortgage is at 7.09%

...

"The economy continues to do better than expected, and the 10-year Treasury yield has moved up, causing mortgage rates to climb," said Sam Khater, Freddie Mac’s chief economist. "Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales."

A recent report from Realtor.com showed that the number of available homes on the market in June was down more than 47% from the typical amount before the COVID-19 pandemic began in early 2020.

The Federal Reserve's aggressive interest-rate hike campaign sent mortgage rates soaring last year, and sellers who locked in a low mortgage rate before the pandemic have been reluctant to sell and jump into a higher rate on a new property, leaving few options for buyers.

High inflation has driven the Federal Reserve to raise its benchmark interest rate 11 times since March 2022. Its fed funds rate has hit the highest level in 22 years.

FED OFFICIALS SEE ONGOING INFLATION RISKS THAT COULD REQUIRE MORE RATE HIKES, MINUTES SHOW

Realtor.com economist Jiayi Xu said Thursday in a statement that rates could remain high for the foreseeable future.
...

People are still buying houses despite the increase so far.  Apparently, their income is increasing enough to make the houses affordable. 

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