FILE - A housing development in Middlesex, Pa., is shown on March 29, 2024. Americans hoping to buy a home are finding little relief in the way of affordability despite slower activity in the housing market and lower mortgage rates with high asking prices being held up limited properties for sale.
But weaker activity in the housing market isn’t leading to lower prices, which are being propped up by fewer listings on the market. but are still well above the ultra-low rates of 3% or less that were available during the pandemic. Mortgage rates do not directly follow the Fed’s rates but tend to follow the yield on 10-year Treasurys, which are influenced by investor expectations and demand. Expectations of higher rates for longer with sticky inflation has kept mortgage rates higher for much of the last two years.