According to Freddie Mac, the average interest rate on a 30-year fixed mortgage hovered at 6.95 percent for the week ending Nov. 3. That's a bit lower than the 7% threshold breached last week, but still more than double what it was a year ago.

Given that the cost of a typical homebuyer's mortgage has risen more than 77 percent from a year ago, the housing market is understandably in shock.

And the latest real estate statistics for the week ending October 29 show that the downward trend continues.

Will mortgage rates continue to rise?

It's possible that America's already surprising mortgage rates will continue to rise in response to the Federal Reserve's efforts to curb inflation.

"Chairman [Jerome] Powell has made clear that curbing inflation is a top priority and may require higher policy rates than previously anticipated," said Danielle Hale, chief economist at Realtor.com®.

While mortgage rates are not directly tied to the Fed's actions, they do tend to respond in tandem. As Hale explains, "mortgage rates are likely to follow these expectations higher."

Given that home prices are currently hovering at $425,000 in October, high mortgage rates could be even more daunting. And for the week ending Oct. 29, home prices continued to increase 12 percent compared to the same week last year, marking the 44th week of double-digit growth.

Why are home prices still rising year over year? Because some buyers are expecting the promise of continued interest rate increases from the Federal Reserve, and they are still making offers, likely to catch up with the market.

"Despite the affordability challenges in today's housing market, homeownership rates continued to climb in the third quarter as households look to lock in their monthly payments," Hale explained.

However, while there are homebuyers enjoying success in the market, Hale noted that "barriers are getting higher and higher" when it comes to the path to homeownership.

These barriers to homeownership include not only historically high home prices and skyrocketing interest rates, but also rising inflation rates that are near 40-year highs and increasingly challenging economic conditions.

The backlog of homes on the market is growing as some homebuyers pull back and put their plans on hold.

Data for the week ending Oct. 29 show that the number of active listings on the market increased 40 percent compared to the same week a year ago, surpassing the high since October 2020.

However, the number of new listings from sellers just entering the market dropped 13 percent compared to the same week a year ago.

"The new listings data suggests that homeowners are still reluctant to sell," Hale said." This marks the 17th consecutive week of year-over-year declines in the number of new listings coming to market."

Why aren't sellers eager to cash out of high prices? Because many still have low-interest mortgages on their current homes. And they likely don't want to buy a new home or apply for a new mortgage with a higher monthly interest rate.

"With most homeowners locking in mortgage rates well below the current prevailing rates, the number of new listings is likely to stay low," Hale said.

In October, homes stayed on the market for 51 days before being snapped up. In the week ending Oct. 29, homes were on the market six days longer than they were in the same week last year.

This marks the fourteenth consecutive week that properties spent more time on the market compared to 2021.

"As mortgage rates continue to climb, buyers who have not canceled their searches may have more time to make a decision," Hale said.

However, Hale advises to keep this rising interest in mind and not wait too long to buy a home.

"[Buyers] may still want to act soon if they decide to buy in the near term, as the November Fed meeting could put additional upward pressure on mortgage rates," Hale said.