its a double whammy for wouldbe homebuyers not only are interest rates soaring its getting harder to qualify for a loan the average rate on the popular 30year fixed mortgage climbed over 7 at the end of last week according to mortgage news daily and is expected to hit around 7125 on tuesday its been over 7 for several days meanwhile mortgage credit availability is now at the lowest level since march 2013 which was when housing was in a slow recovery from the financial crisis at the end of the prior decade it fell for the seventh consecutive month in september down 54 from august according to a monthly index from the mortgage bankers association while lenders may be desperate for business as mortgage demand drops due to higher rates they are also more concerned about a weaker economy which could lead to higher delinquencies executives and economists have warned that the us could fall into a recession in the coming months as the federal reserve hikes rates to battle high inflation there was a smaller appetite for lower credit score and high loantovalue loan programs joel kan a mortgage bankers association economist said in a release mortgage delinquencies at the moment sit near record lows while new foreclosure actions rose 15 from july to august they were still 44 below prepandemic levels according to black knight a mortgage software and analytics company credit availability fell the most for jumbo loans which more borrowers today have to use due to higher home prices according to the mortgage bankers association higher prices also have more borrowers turning to adjustablerate mortgages because they offer lower interest rates these loan rates can be fixed for up to 10 years but they are considered riskier mortgages borrowers are clearly concerned that mortgage rates will move even higher while mortgage rates dont follow the federal funds rate exactly they are influenced heavily by the feds policy the fed is determined to hike rates as high as it can and keep them there as long as it can even if that means the economy suffers matthew graham chief operating officer of mortgage news daily wrote on its website graham noted the fed is not considering mortgage rates or the housing market because home prices are overheated and a correction is good and necessary