Mortgage interest rates are now officially above 7%, hitting 7.09% this week, up from 6.96% the prior week. This is the highest 30-year fixed mortgage interest rate since April 5, 2002 — the highest rate in more than 20 years.
The rate translates into a mortgage payment for a single-family home of $2,234 and $1,942 for a condo. The increased mortgage rate is exacerbating housing affordability as home prices are climbing in this limited inventory environment. Something has to give for rates to come down, and that something is the next decision by the Fed.