Mortgage Rates Hit Highest Level in a Generation, Slamming Housing Market

Mortgage rates climbed to 7.49% this week, the highest level in a generation, per data from Freddie Mac.

Higher mortgage rates are hurting affordability and home sales, which are down over 20% from last year.

The Fed's interest rate hikes to fight inflation are pushing up mortgage rates by raising the 10-year Treasury yield.

Most current homeowners have sub-6% mortgage rates, so are not listing homes due to unappealing new loan rates.

Home prices continue creeping up as buyers compete for limited inventory, exacerbating affordability challenges.