Mortgage rates have climbed by 20 basis points in the week ending Oct. 10, marking the most significant weekly increase since April. National Association of Realtors chief economist Lawrence Yun joins Wealth! to share his outlook on how this will impact the housing market.

Yun emphasizes the importance of understanding that the Federal Reserve does not directly control mortgage rates. He explains why some consumers were caught off guard when mortgage rates rose despite the Fed's September rate cut: "The Federal Reserve does not directly control mortgage rates; it's the broader bond market." Nevertheless, Yun maintains that despite this recent uptick, current rates remain "measurably lower" than those seen in spring and year over year, suggesting that a 6% mortgage rate may be "the new normal."

Addressing supply and demand dynamics in the housing market, Yun highlights that inventory is "more and more" returning. He notes that due to inevitable life changes, individuals will continue to buy and sell homes, gradually rebalancing market trends.

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Read more: What determines mortgage rates? It’s complicated.

This post was written by Angel Smith