The average 30-year fixed mortgage rate climbed again this week, hovering near 7%, according to the latest survey data from Freddie Mac.
That's a tough number for anyone who remembers rates sitting under 3% just a few years ago.
For a median-priced home, the difference translates to hundreds of extra dollars every month.
On a $400,000 loan, a 7% rate means a principal and interest payment of roughly $2,660.
That's nearly $1,000 more per month for the exact same house, and it doesn't even include taxes, insurance, or HOA fees.
They've created a "lock-in effect" that keeps existing homeowners from selling, because most of them refinanced when money was cheap.
Fewer homes for sale means prices stay stubbornly high even as demand cools.
It's a strange market where affordability is worsening while sales volume drops.
For anyone shopping right now, the strategy has shifted.
Some buyers are using seller-paid rate buydowns, where the seller covers points to lower your rate for the first year or two.
Others are taking adjustable-rate mortgages, betting they'll refinance before the fixed period ends.
Both carry real risks if rates don't fall as hoped.
Credit card rates are near record highs too, which makes saving for a down payment harder.
Every dollar going toward revolving debt is a dollar not going into a savings account.
If you're carrying balances, paying those down aggressively can improve your debt-to-income ratio and might help you qualify for a better loan.
The Fed's next moves matter, but they don't control mortgage rates directly.
Mortgage rates track the 10-year Treasury yield, which reacts to inflation data, jobs reports, and investor expectations.
A single cool inflation reading can push rates down a bit, while a hot one can send them right back up.
Get pre-approved anyway, because a pre-approval tells you your real budget instead of a guess.
Shop at least three lenders, since rate quotes vary more than most people expect.
And ask about lender credits versus points, because sometimes a slightly higher rate with lower upfront costs is the smarter play if you plan to refinance.
Our take: waiting for 5% rates could mean waiting years, and home prices may keep climbing in the meantime.
If the monthly payment works for your budget today, buying now and refinancing later is a reasonable path.
Final Thoughts
Just run the numbers honestly, and don't stretch so far that a single emergency throws everything off track.