Facts: The average 30-year fixed mortgage rate from Freddie Mac rose to 6.93% from 6.91% last week. At 6.93%, with 20% down, a monthly mortgage payment is $2,114 on a home with a price of $400,000. With 10% down, the typical payment would be $2,378.

Positive: Despite the current affordability headwinds, there has been an increase in both pending and existing-home sales activity. Homeowners are making trades with housing equity gains, offsetting higher mortgage rates. 

Negative: Rates hitting a 6-month high will plague first-time buyers who are more rate-sensitive. Mortgage applications declined last week as home buyers reacted to higher mortgage interest rates in late December/early January. Eyes will turn to home builders who borrow to build and watch rates acutely.

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