Mortgage Rates and Payments Keep Rising, Creating Market Misery

Current mortgage rates continue to rise and record payment rates combine to create a glum market.

Graphic of a house with a giant dollar sign leaning on it
(Image credit: Getty Images)

Since September of 2023, the Federal Reserve has held the federal funds rate, a key overnight bank lending rate, at unchanged levels. Previously, there were 11 rate hikes that began in March 2022 in an attempt to combat inflation, which has caused consumers to face higher commercial interest rates, especially mortgage rates. But good news for borrowers — interest rate cuts are expected for later this year. 

Although mortgage rates are largely dependent on the 10-year Treasury yield and not the federal funds rate, they've started to come down. According to Freddie Mac, as of March 20, the most recently available data, the average 30-year mortgage rate was 6.74%. There have been declines totaling almost a quarter of a percentage point over the last two weeks. Despite the recent dip, mortgage rates remain high.

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.