Higher Mortgage Rates Threaten US Housing-Market Recovery

Mortgage affordability is becoming a growing concern for the US housing market as borrowing costs remain elevated.

Higher mortgage rates are putting additional pressure on US homebuyers as affordability concerns weigh on housing demand.

Zillow senior economist Kara Ng noted that mortgage rates have recently moved above year-earlier levels, citing Freddie Mac's weekly survey of 30-year fixed-rate mortgages.

The latest figure cited in the original report was 6.69%, which would represent the first time in 2026 that the rate had exceeded its year-earlier level.

Mortgage applications tracked by the Mortgage Bankers Association have cooled since the beginning of the year.

The trade group expects mortgage originations during the remaining two quarters to trail last year's levels after exceeding 2025 levels during the first half.

Rocket's chief financial officer, Brian Brown, said early data from its brokerage, Redfin and other indicators led the company to expect the third-quarter mortgage market to be smaller than the second quarter—something the industry had not seen since 2022.