The Commercial Real Estate Alpha Site

As of this weekend, the average 30-year fixed mortgage rate remains around 6.70%, underscoring the Fed’s continued hawkish bias and the stickiness of core inflation. Although job growth remains healthy, policymakers appear unwilling to cut until wage growth and services inflation cool meaningfully. For consumers, that means home affordability remains tight—especially with housing supply still well below historical averages.

For investors, the implications stretch far beyond real estate. Persistent rate elevation pressures housing-linked equities, dampens consumer credit appetite, and shapes bond duration preferences. It also affects risk appetite at the margin—when the cost of capital stays high, valuations matter more, and so does balance sheet quality. In this environment, yield isn’t just a byproduct—it’s part of the decision calculus. Elevated rates aren’t a detour; they’re part of the new map.