US mortgage rates touch 7% amid Iran war, inflation; existing home sales fall 2%

The US housing market is facing fresh pressure as mortgage rates approach 7%, adding to affordability concerns for buyers already grappling with record-high home prices and an uncertain economic outlook.The average rate on a 30-year fixed mortgage stood at 6.76% last week, according to Freddie Mac. But daily rates have since crossed 7%, according to Mortgage News Daily, which uses a different methodology, The Wall Street Journal reported.While the 7% threshold does not by itself represent a major change in affordability, economists say it could further discourage buyers who have already been holding back from the market.“A jump in rates like this will certainly cause [prospective home buyers] to pause,” Michael Fratantoni, chief economist at the Mortgage Bankers Association, told WSJ.