Interest rates on US mortgages have remained unchanged over the past week, bringing little relief to the housing market, which has been hit by borrowing costs returning to 7%. Freddie Mac said in a statement Thursday that the average interest rate for 30-year fixed-rate mortgages remained at 7.4%. The interest rate is hovering at its highest level since November 2023. A year ago it was 6.27%. Both buyers and sellers have been hit hard by soaring borrowing costs. Mortgage interest rates rose above 7% last month and have yet to fall. As housing affordability worsens, rising interest rates both force sellers to cut prices and discourage potential buyers. Prior to Freddie Mac's latest report, Lisa Sturtevant, chief economist at listing service Bright MLS, said, “The housing market is expected to slow significantly this fall. Multiple headwinds caused by rising mortgage interest rates, higher inflation, and weak consumer confidence will drag down market activity further.” Sturtevant said that this year's second-hand housing sales may fall below 4 million units for the first time since the 1990s.

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