Mortgage rates and housing affordability remain the main pressure points
Mortgage rates continue to play a central role in housing market activity because they directly affect the monthly payment buyers must carry. Freddie Mac’s survey showed the average 30-year fixed mortgage rate stood at 5.98% on February 26, 2026, before rising to 6.53% on May 28. 5 Even small moves can quickly change what buyers can afford.
Mortgage rate movements can also affect supply, not just demand. When rates fall, some homeowners may feel less penalized about giving up their existing low-rate mortgage, which can reduce the lock-in effect over time, where homeowners forgo selling to improve their location, home size or…
