The financial picture feels cautious as high borrowing costs keep housing budgets stretched tight.

This week, the financial picture feels cautious as borrowing costs stretch housing budgets.

1. Freddie Mac reports the average 30-year mortgage is 7.40%, near the highest level since late 2023 and about 1.09 points higher than a year ago, pushing a typical monthly payment to $2,407, or roughly 27% of a family's monthly income.
2. Bureau of Labor Statistics notes consumer inflation expectations hit 3.9%, the highest in over three years, keeping household planning in focus.

It is a more cautious read than week of Oct 12 as a cautious mood settles in, echoed by folks on r/FirstTimeHomeBuyer debating how to afford those payments.