Mortgage rates experienced some volatility early this week, with the 30-year fixed rate briefly spiking above 5%. Now, it’s settled back down just below 5.

High rates coupled with high home prices have strained affordability for many buyers. This dynamic has started to have a cooling effect on the housing market. In April, sales of new homes dropped to the slowest pace since April 2020, when few people were buying homes due to pandemic-related shutdowns. READ MORE