The recent increase in mortgage rates has dampened demand for homes, leading to a significant decline in sales of existing homes compared to previous years. Home sellers who locked in low rates during the pandemic are hesitant to list their homes, fearing they won’t find comparable rates when they become buyers. Mortgage rates typically follow the yield on the 10-year Treasury bond, considered a safe investment backed by the U.S. government. Economists anticipate elevated mortgage rates for the next few months, settling well above the historically low rates seen early in the pandemic. Despite this, home buyers can take steps to secure lower rates, such as maintaining a strong credit score and providing a sizable down payment, typically at least 20% of the purchase price. Doing so may place buyers in a less competitive market, potentially facilitating smoother transactions.

https://www.nytimes.com/2023/08/26/business/mortgage-rates-housing-market.html