The mortgage industry is facing slowing housing inventory growth and rising mortgage rates. Last week saw mortgage rates hitting a record high for the 21st century, closing slightly above forecasts. The 10-year yield, a key underlying factor that impacts mortgage rates, also exceeded the peak forecast for the current year. Although purchase application data mostly held steady from week to week, soaring mortgage rates seem to be having an increasingly negative impact on housing inventory growth.
As key indicators illuminate, the housing market is inching towards an inflection point. If mortgage rates continue to reach new heights and show no signs of slowing down, a further deterioration in housing inventory growth can be expected in the coming weeks. In addition, there is a risk of potential supply issues due to obstacles in production and transportation, which is adding to the current tension in the housing industry.
Key Points:
• Mortgage rates hit a 21st-century high last week
• 10-year yield exceeded peak forecast for 2023
• Housing inventory growth was slow
• Purchase application data remained steady
• Mortgage rates have been near or above 7% for the past few months
• Risk of supply issues due to production and transportation
You can read this full article at: https://www.housingwire.com/articles/higher-mortgage-rates-havent-increased-inventory/(subscription required)
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