Last week, the U.S. Mortgage Bankers Association reported that mortgage rates had hit a 22-year high of 7.41%, causing a drop in home-purchase applications. This increase has made the already strained housing market even less affordable, with home prices continuing to rise due to a limited supply of homes on the market and homeowners being reluctant to move in the current high-rate environment. The escalating borrowing costs have also resulted in a decrease in overall mortgage applications, including refinancing activities. Federal Reserve Chair Jerome Powell has suggested that these high rates may persist or even increase further if inflation does not return to its 2%
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