The average 30-year fixed-rate mortgage rate has reached its highest point in over two decades, according to an announcement by Freddie Mac. This increase follows a 0.8 percent rise in home prices in June, breaking a trend of slowing growth for over a year. Currently standing at 7.09 percent, this elevated mortgage rate is attributed to factors such as the robust state of the economy and the escalation of the 10-year Treasury yield. Freddie Mac's Chief Economist, Sam Khater, noted that the last time the mortgage rate exceeded seven percent was in November. Affordability challenges have impacted demand, but the primary reason for sluggish home sales is the limited housing inventory. This week's rate is 0.13 percent higher than the previous week's and 1.96 percent higher than the rate recorded at the same time the previous year.