Mortgage rates just hit their highest since 2002

Mortgage rates have been surging, making home ownership a lot less affordable for many people. The higher rates have also made people reluctant to sell their current homes, since many would likely have to pay more in mortgages for their next house. (Scott Olson/Getty Images)

Mortgage rates jumped to their highest level in more than two decades, making home-ownership even less affordable for many would-be buyers.

The average interest rate on a 30-year, fixed-rate home loan climbed to 7.09% this week, according to mortgage giant Freddie Mac. That's the highest it's been since April 2002 and comes after the Federal Reserve has raised interest rates aggressively in a bid to fight inflation.