- ORIGINAL NEWS
Mortgage demand takes a massive hit as interest rates cross back over 7%
- SUMMARY
Mortgage rates have increased, impacting home loan applications and demand.
– The average 30-year fixed-rate mortgage rate reached 7.06% last week.
– Refinancing applications declined by 11%, while home purchase applications fell by 10%.
– Potential homebuyers are facing affordability challenges due to higher rates and home values.
– The adjustable-rate mortgage (ARM) share of applications rose due to lower rates, but it is considered riskier.
– Mortgage rates surged after a report on wholesale prices showed persistent inflation.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“One year ago, the 30-year fixed rate was 6.62%”
“With rates higher, the adjustable-rate mortgage share of activity increased to 7.4% of total applications”
Negative
“Mortgage rates surged last week to the highest level since early December, and that hit mortgage demand hard”
“Applications for a mortgage to purchase a home fell 10% for the week and were 13% lower than the same week a year ago”