In response to the Covid-19 pandemic, the Federal Reserve dropped interest rates to historic lows. As a result, the average rate on a 30-year fixed mortgage fell below 3.0% in December of 2020. With the Fed changing course and rates now rising, 30-year mortgage rates have increased in turn, now around 5.5% on average. This article from Wolf Street discusses where the U.S. housing market has been and where it may be headed next.