Higher interest rates add to problems with affordability that have hammered the housing market for the last two years. Prices have continued to climb despite slower sales volume, posting 17

Mortgage rates topped 7% this week, a key psychological threshold, in a sign of the US housing market’s unrelenting affordability challenges.

The average 30-year fixed rate rose to 7.04% for the week ending Thursday, according to mortgage giant Freddie Mac. The average has now climbed for five straight weeks, and this week marks the first time since May the it has climbed above 7%. Last week, the average was 6.93%. Three years ago at this time, the average stood at 3.45%.

The average rate on a 30-year fixed mortgage reached 7.04% for the week ending January 16 — the highest level since May.

The interest rate on average fixed-rate 30-year home loan is more than 7%, the first time mortgage rates have been that high since May

The elevated mortgage rates have discouraged home shoppers, prolonging a national home sales slump that began in 2022.

After recently shooting up to the most expensive level since May, 30-year mortgage rates have fallen considerably the last two days. Most other loan types also saw declines.

After climbing to their most expensive level in more than seven months, 30-year mortgage rates held steady Tuesday. Rate movement was mixed for other loan types.

The 30-year fixed rate mortgage continues to close on the 7% mark. With political uncertainty and the U.S. economy remaining strong, it could keep going up.

The average rate on a 30-year mortgage in the U.S. ticked up this week to slightly above 7%, the highest level in eight months.

Freddie Mac’s 2024 multifamily volume was up 34% over 2023, the government-sponsored enterprise (GSE) reported. Its production volume totaled $66 billion—$65 billion in multifamily financing and $1 billion in low-income housing tax credit (LIHTC) equity investments.