Mortgage rates near 7%, raising affordability concerns for homebuyers

STROUDSBURG, MONROE CO. (WOLF) — With mortgage rates nearing 7%, the cost of buying a home is once again becoming a concern for buyers and sellers.

The Federal Reserve’s latest interest rate decision pushed the average 30-year fixed mortgage rate to 6.95%, adding pressure on affordability and making today’s housing market harder to navigate.

2026 President of the Pocono Mountains Association of Realtors, Tiffanie Bailey-Romey, said buyers shouldn’t fear the change but should work with a realtor who can help them understand their budget, explore their options, and consider refinancing them down the road.

“They’re going to be buyers now that are going to have to make different decisions on the home process and the buying process. Definitely work with a realtor because we understand how we can take what you might perceive to be a major challenge and boundary for you entering into the housing market, and we can help you now purposefully get and be able to purchase a home,” said Bailey-Romey.

“There may be an opportunity where we're able to negotiate with the seller to be able to buy the home at a less price. I always say date the rate, but marry the house, because you can refinance when those rates change,” said Bailey-Romey.

Bailey-Romey said rising interest rates and other homeownership costs can put added pressure on buyers, especially first-time homeowners and those on fixed incomes.

She said affordability goes beyond the price of a home, with borrowing costs and monthly payments also playing a major role.

“Our median sale is somewhere around $336,000. So that's that wonderful fat middle that America is affording. And so when you're talking about a hike in an interest rate, the difference between a $2,000 a month mortgage and a $2,200 a month mortgage is significant in many of our first time homebuyers, many of our people that are empty nesters and looking at you on a fixed income. It is significant, especially with the rise in insurance, the rise with taxes, the rise with fossil fuels, things like that. So, all of these things and these pieces make a difference,” said Bailey-Romey.

“There’s down payment assistance programs. So, if you think about it, you're using other people's money, OPM. And sometimes OPM, they may want 7%, because you are using 96.5% of someone else's money in order to own your home,” said Bailey-Romey.

While some buyers may wish they had purchased a home years ago, Bailey-Romey said it’s still important to focus on what’s affordable today, noting that a fixed monthly mortgage payment can remain consistent over time.

“But what I will say to you is this at the end, trust me, you will want to be able to be in a situation where what you're paying monthly today is what you're being paying monthly for ten years from now, and you won't be that person saying, I wish I would have done it back then. You will be one of those people that says, I did it back then,” said Bailey-Romey.

For those looking to buy now, realtors recommend working with an agent who knows the local market and its neighborhoods well.