The housing market is one of the biggest indicators of the health of the American economy. The latest housing market tracker report showed that mortgage rates have seen a significant increase recently, which has led to a decrease in purchase applications.
The mortgage rate on a 30-year fixed loan has risen to an average of 4.8%, the highest it’s been since April. According to the Mortgage Bankers Association, this rise in rates has led to a 7.3% decrease in purchase applications from the week prior. Applications for refinance loans have increased as well, rising by .9%.
The increase in rates can be attributed to a multitude of factors, such as the recent hikes in the federal funds rate by the Federal Reserve, as well as the increasing cost of Treasury yields. This rise in cost has put a strain on those looking to purchase a home, as the payments become more expensive than before. Even with the recent decrease in purchase applications, however, the housing market is still sustaining itself well.
It remains to be seen if the rise in rates will further affect housing market purchases in the future. For now, with the housing market still showing significant signs of strength, buyers should still be able to find attractive mortgages to fit their needs.
You can read this full article at: https://www.housingwire.com/articles/housing-market-tracker-higher-rates-crush-purchase-apps/(subscription required)
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