HomeFinance NewsMortgagesMortgage Madness: 7%+ Rates Crush Homebuyer Dreams!

Mortgage Madness: 7%+ Rates Crush Homebuyer Dreams!

  • ORIGINAL NEWS

Mortgage demand takes a massive hit as interest rates cross back over 7%


  • SUMMARY

Mortgage rates have surged again, reaching 7.06% for 30-year fixed-rate loans.

This has caused a significant drop in mortgage applications, with an 11% decline in refinancing and a 10% drop in home purchase applications.

The higher rates are making it more difficult for both potential homebuyers and those looking to refinance their existing mortgages.

The increase in rates is due to concerns over persistent inflation, and it has made adjustable-rate mortgages more attractive due to their lower initial rates.

However, these mortgages come with the risk of potential higher rates in the future.


  • NEWS SENTIMENT CHECK
  • Overall sentiment: negative
  • Positive

    Negative



    “Mortgage interest rates surged last week to the highest level since early December, and that hit mortgage demand hard.”

    “Applications to refinance a home loan dropped 11% last week compared with the previous week and were just 0.1% higher than the same week one year ago.”

    “Applications for a mortgage to purchase a home fell 10% for the week and were 13% lower than the same week a year ago.”

    “Refinance volume had been running above year-ago levels, even with rates higher this year, but the jump in rates last week clearly made a refinance not worth it for most borrowers.”

    “With rates higher, the adjustable-rate mortgage share of activity increased to 7.4% of total applications.”

    “Mortgage rates jumped even higher Friday after a¬†monthly government report¬†on wholesale prices showed inflation is still persistent and hotter than most analysts had expected.”

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