The 30-year mortgage rate hits a new 23-year high, pushing closer to 8%

• Rates on the 30-year fixed mortgage hit 7.92% on Tuesday, Mortgage News Daily's Rate Index showed.
• That's the highest level for the most popular US home loan in 23 years.
• High mortgage rates, expensive home prices, and low inventory have strained the US housing market.

The average rates on the 30-year fixed mortgage hit 7.92% on Tuesday, according to Mortgage News Daily's index.

That's the highest mark in 23 years, and with the latest 12 basis-point increase, average monthly payments are hovering at $1,820 per month.

Mortgage rates are a key input for housing affordability, and combined with high home prices and low inventory, they've pushed many prospective buyers to the sidelines in recent years. 

The Federal Reserve's historic interest rate hiking campaign has influenced a rise in borrowing costs throughout the economy. It's helped fuel a lock-in effect for current homeowners unwilling to move homes due to having previously secured a lower mortgage rate, keeping both sellers and buyers off the market. 

To that point, last week Redfin's Homebuyer Demand Index dropped to its lowest level in nearly a year, while mortgage-purchase applications fell near their lowest level in three decades.

Redfin reported that the median asking price for a home hit $388,223 in the four weeks leading up to October 8, a 5.2% increase year-over-year.

Inventory snags have also kept the market tight. The total number of homes for sale in the four weeks to October 8 was down 14% compared to the same time last year.