The average rate on the 30-year fixed mortgage is currently around 7.5%, the highest level since mid-November and up from around 6% in February. Higher rates caused home sales to stall last year but rebounded before rising rates halted the surge. Affordability is weakening as rates increase while housing supply remains very low, fueling competition. Despite higher rates, mortgage applications to purchase homes rose 5% last week compared to the prior week. Economists expect rates to remain elevated given inflation and Fed policy, dampening sales going forward.