How 7% Mortgage Rates Open New Housing Opportunities

The 30-year mortgage rate has risen above 7%, driven by high Treasury yields and inflation, challenging the housing market's recovery. Despite increased home inventory, sales remain low due to high prices and a "lock-in effect" from historically low mortgage rates during the pandemic. Affordability is tightening, with monthly payments significantly higher than in 2020, prolonging market stagnation without a structural price adjustment.