Mortgage Rates Hit 6.88%, Home Costs Soar as Inflation Fuels Housing Crunch

Mortgage rates continued climbing, with the average 30-year fixed rate reaching 6.88% this week according to Freddie Mac.

Inflation is pushing mortgage rates higher, and spring homebuying demand is adding further pressure.

Monthly mortgage payments hit a record high average of $2,747 in April according to Redfin data.

Home prices remain high, with the April median sale price just $5,000 below last June’s record level.

Homeowners insurance rates are projected to rise 6% this year and continue increasing through 2024, especially in disaster-prone states.