Mortgage activity ground to a halt last week as rates surged to their highest levels in seven years.
Applications for both refinancing and purchase mortgages nosedived, according to the Mortgage Bankers Association.
Refinance applications fell a whopping 37% from the previous week, while applications to purchase a home tumbled 9%.
The surge in rates appears to be driven by a variety of factors, including rising inflation expectations and the ongoing sell-off in the bond market.
The average rate for a 30-year fixed mortgage jumped to 4.86% last week, up from 4.54% the previous week.
Rates are still relatively low by historical standards, but they are rising quickly and could scare off potential homebuyers.
-Mortgage applications are at their lowest level since 1996
-Last week, refinance applications fell 37% and purchase applications fell 9%
-Rates are rising quickly, spurred by inflation expectations and the bond market sell-off
-The average rate for a 30-year fixed mortgage is now 4.86%
You can read this full article at: https://www.housingwire.com/articles/mortgage-applications-slump-after-rates-surge-to-23-year-high/(subscription required)
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