- Since the pandemic, U.S. mortgage rates have risen dramatically. This surge, combined with historically high home prices, has tanked housing affordability, with first-time homebuyer rates falling to half the historical average. Even a substantial drop in mortgage rates would not restore housing affordability for most Americans.
During the pandemic, one of the few things people enjoyed were low mortgage rates. From spring 2020 through 2021, mortgage rates were around or even below 3%. Rates steadily crept up during 2022 and 2023, peaking at 8% in late 2023.
