Soaring mortgage rates, now over 7%, pose new challenges for home buyers, according to Freddie Mac. The average rate on a 30-year fixed loan hit 7.1%, a significant jump from the previous week’s 6.88%.

Mortgage News Daily reported an even more pronounced daily average rate of 7.43% on Thursday. This surge, up from barely 7% at the beginning of the month, underscores the ongoing pressure on homebuyers in an inflationary environment.

While the rise in rates has prompted some urgency among potential buyers to secure their purchases before rates climb further, the market remains uncertain. Purchase applications saw a modest increase, indicating a mix of buyer strategies in response to the evolving rate landscape.

Despite the uptick in purchase activity, existing home sales declined over 4% in March. The median price for existing homes reached $393,500, marking the ninth consecutive month of year-over-year increases. This trend persists across all four U.S. regions, signaling continued challenges for buyers amid elevated rates and tight inventory.

As buyers navigate these challenges, the housing market awaits further developments, with the potential for rate fluctuations and economic indicators shaping the trajectory of the spring season.