How the US national debt is keeping mortgage rates elevated

Prospective homebuyers in the U.S. are keeping a close eye on the Federal Reserve as they eagerly await interest rate cuts that could offer relief from painfully high borrowing costs.

But there is another factor that could keep mortgage rates elevated in the coming months and years: the U.S. national debt.

"As mortgage rates remain near 7%, a lot of attention is being paid to the timing of Federal Reserve interest rate cuts," said Lisa Sturtevant, Bright MLS chief economist. "But a...