US 30-year fixed-rate mortgage rate hits 7.40%, likely to further erode housing demand

The 30-year fixed-rate mortgage in the U.S. has reached 7.40%, its highest level since 2002, due to rising inflation and increasing energy costs. This surge is expected to further dampen housing demand and affordability, with homeowners hesitant to sell amidst higher mortgage rates. Despite high home prices, experts caution against a potential market slowdown.