Facts: The 30-year fixed mortgage rate from Freddie Mac rose to 7.03% over the last week from 6.94%. At 7.03%, with 20% down, a mortgage payment on the median-priced existing home of $407,600 is $2,176. The typical first-time buyer had a downpayment of 8% last year—with this downpayment, the monthly payment was $2,502.

Positive: It can be hard to find the upside in this week's housing data. Mortgage rates are up, applications are down, and pending home sales are down. But there is always an opportunity when there is less demand. First-time buyers can participate in a slightly less competitive market if they can afford it. High-equity buyers are still dominating the market.

Negative: Higher mortgage rates have impacted the ability of buyers to purchase and created a lock-in effect that has gridlocked the housing market. Sellers who move now are likely in two camps: they either have to move, or they have a lot of housing equity to offset these rates.
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