Authored by Naveen Athrappully via The Epoch Times,The average weekly rate on a 30-year fixed-rate mortgage is at its highest level in nearly a year, contributing to elevated housing costs and dampening buyer interest.A home for sale in Alhambra, Calif., on Aug. 28, 2025. Frederic J. Brown/AFP via Getty ImagesFor the most recent week, the mortgage rate was at 6.55 percent, according to a July 16 statement by Freddie Mac. This is the highest level since the week ending Aug. 27, 2025, when the rate was at 6.56 percent. Since mid-May, rates have consistently hovered around 6.5 percent.Rates have risen consecutively over the past two weeks, from 6.43 percent for the week ending July 1 to 6.55 percent currently.Meanwhile, pending home sales in the country declined 2.2 percent for the four weeks ending July 12 compared to the four-week period ending July 5, according to a statement from real estate brokerage Redfin.First-time homebuyers are facing a “tough time” breaking into the housing market, Christine Kooiker, a Redfin Premier agent in Grand Rapids, Michigan, said in the statement.”High mortgage rates mean that even homes in the most affordable price point – under $350,000 in the Grand Rapids area – are a stretch for a lot of buyers, and they’re hard to find and competitive,” Kooiker said.Many buyers are “sitting on the sidelines, too, because they’re locked into low mortgage rates or can’t find a new home they love.”Similar findings were made by the National Association of Realtors (NAR), which, in a July 16 statement, reported a 5.4 percent month-over-month dip in pending sales in June.The decrease was most pronounced in the Midwest, followed by the West, South, and Northeast.”The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers,” NAR Chief Economist Dr. Lawrence Yun said in the statement.Housing AffordabilityLawmakers have taken action to ease the burdens on prospective homebuyers and make housing more affordable for Americans.On July 11, the 21st Century ROAD to Housing Act became law. The legislation aims to ensure housing affordability through various measures, such as rolling back permits and regulations, and offering financial support to homebuyers, builders, and state and local governments.The bill was passed by the House and Senate last month. However, President Donald Trump refused to sign the bill until the election integrity bill, the SAVE America Act, was passed by Congress.According to Article I of the U.S. Constitution, if a bill is not returned by the president within 10 days after being presented, it shall become law. Trump’s deadline to veto the bill was July 10.The bill “will cut red tape, lower costs, and boost the supply of housing,” Rep. Sam Liccardo (D-Calif.) said in a July 13 statement.”We need to build on this momentum and keep rolling up our sleeves to tackle the housing crisis confronting far too many American families.”Meanwhile, builder confidence in the market for newly built single-family homes declined in July from the previous month, according to a July 16 statement from the National Association of Home Builders (NAHB).The NAHB/Wells Fargo Housing Market Index was at 36 in July, the 15th straight month it has remained below the 40 level. This is the longest stretch of monthly values below 40 since 2012.NAHB chief economist Robert Dietz cited housing affordability as the “primary challenge” facing the home building industry.NAHB chairman Bill Owens said that many potential buyers continue to hesitate to purchase homes as they wait for mortgage rates to come down and for more clarity on inflation and the economic outlook.While the 21st Century ROAD to Housing Act has some important provisions addressing obstacles faced by buyers and builders, “these reforms will take time to implement,” Owens said.
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