Insight
Mortgage rates have not broken above 7% due to improved mortgage spreads in 2026, a key factor supporting housing. Historically, spreads range from 1.60% to 1.80%, but were at 2% last week.
The housing market defies expectations even with higher rates
Summary
Housing demand shows surprising resilience despite rising rates, conflict, and hawkish Fed policy. Mortgage spreads are a key factor, keeping rates below 7%. Wage growth outpacing home prices aids affordability, though growth is slowing.
Key takeaway