30-year mortgage rates rise for fifth-straight week in a row

Yahoo Finance Live examines rising mortgage rates edging amid a tightening housing market for homebuyers.

Video Transcript

DAVE BRIGGS: Now on housing, as mortgage rates continue their climb back towards 7%, the average 30-year fixed up for the fifth straight week to 6.73%. That's according to Freddie Mac, up from 6.65% a week ago. Rates were just above 6% though, in early February. It's been a steep climb.

They were 3.85% one year ago. Freddie Mac chief economist Sam Cotter says rates are climbing in reaction to Fed Chair Powell's more aggressive stance, adding, quote, "would-be homebuyers continue to face the compounding challenges of affordability and low inventory."

And it's the same story we've talked about for five straight weeks now, Seana. We can see the 10-year will continue to bring rates higher. It's now at 3.925%. But we've got a 50-point hike projected, another 25 point hike beyond that. And the worst is not over, unfortunately.

SEANA SMITH: Yeah, I think that is clear. And this reversal that we have certainly seen in mortgage rates trending higher, clearly very worrisome, in particular to potential homebuyers out there. They are getting sidelined.

Now housing is becoming even less affordable, an issue that so many homebuyers, potential homebuyers have been struggling with now for quite some time. When you take a look at the recent data, realtor.com saying that the national median price of a listing, 415,000 in February. That was actually up from January. And that was a number that we did see steadily declining between January-- or between June and January. So a bit of a reversal there now that prices are headed higher in terms of the national median listing.

So when you combine higher rates with the fact that prices are still much higher than they were a year ago, up nearly 8% on a year over year basis, it certainly looks like the housing market will be in for some challenging times.

DAVE BRIGGS: And inventories not climbing, and even homebuilder stocks are being downgraded. We talked about a few of those the other day. The only glimmer of hope is rates are beginning-- I mean, excuse me, rents are beginning to come back down. That is about the only positive.