The average rate on a 30-year mortgage has increased to 7.04%, marking the highest level since May 2024 and contributing to a slowdown in home sales. This trend, coupled with increased borrowing costs on 15-year fixed mortgages (now at 6.27%), reflects rising bond yields and economic conditions. The Federal Reserve's cautious approach to rate cuts, due to high inflation, adds to buyer frustrations. Economists predict sustained high rates could continue affecting affordability in the housing market, which is experiencing limited inventory and rising prices.