Mortgage rates have fluctuated more aggressively since the start of the Federal Reserve’s strict interest rate hiking agenda in an effort to beat down inflation. “I think what we’re seeing is the Fed’s efforts to crush inflation are in turn starting to crush demand,” National Association of Home Builders CEO Jim Tobin commented. According to Tobin, this is why many homeowners are reluctant to search for new properties, instead of remaining in their existing homes.

A survey by the Mortgage Bankers Association (MBA) for the week ending August 11 showed that overall purchase demand slumped by 26% compared to the same week a year ago. Purchase applications for a mortgage fell by 0.8% from the previous week, heading to its lowest level in nearly seven months.

The post Mortgage Rates Surge to 21-Year High appeared first on theprimarymarket.com.

Sam Khater, Freddie Mac’s chief economist, pins this surge on the effort to combat rising inflation. “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation,” Khater explained.

As a result, the demand for mortgages slumped to a 22-year low, with elevated borrowing costs and inventory shortages detracting potential buyers. Those buyers who remain in the market have consequently expressed less desire to make a bid on a property, thereby convincing property owners to reassess their asking prices.

Realtor.com reported that the median home price in the United States fell to $435,000 in August, down from July’s figure of $449,000. Robert Heck, the vice president of Morty, believes that this is only the start of the rise in mortgage rates following the increase at the start of 2022.

The post Mortgage Rates Close in on 14-Year Record appeared first on theprimarymarket.com.

This increase is a large factor that is contributing to the lack of affordability in the current housing market, with many property owners also putting off sales in anticipation of eased market conditions where they will be able to raise their asking prices thanks to an increase in demand.

According to Freddie Mac Chief Economist Sam Khater, the recent mortgage rate increase is a testament to the ongoing volatility of the property market. “Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer,” Khater commented.

The heightened mortgage rates have left prospective property buyers hesitant to make purchases, particularly owing to the resulting heightened borrowing costs. According to a Fannie Mae survey, only 17% of buyers believe that now is an opportune time to purchase a home; a 20% decline from the previous month.

The post Mortgage Rates Pass 5% This Week After Brief Dip appeared first on theprimarymarket.com.

Despite the positive signs on the horizon, homebuyers should completely relax. According to Freddie Mac’s chief economist Sam Khater, the current economic situation will continue to provide a fertile ground for mortgage rate volatility. 

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” Khater explained in a statement. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

While this week’s mortgage rate can seem attractive compared to the June peak of 5.81%, the number is still up 2.22% compared to 2021. This has caused a significant slowdown in home market activity and a drop in sales and mortgage demands.

The cooldown of the U.S. house market is expected to continue in the future as 40-year-high inflation and fears of recessions make Americans cautious of costs related to buying a home.

The post Mortgage Rates Dip Below 5% for the First Time in 4 Months appeared first on theprimarymarket.com.

Mortgage rates have fluctuated more aggressively since the start of the Federal Reserve’s strict interest rate hiking agenda in an effort to beat down inflation. “I think what we’re seeing is the Fed’s efforts to crush inflation are in turn starting to crush demand,” National Association of Home Builders CEO Jim Tobin commented. According to Tobin, this is why many homeowners are reluctant to search for new properties, instead of remaining in their existing homes.

A survey by the Mortgage Bankers Association (MBA) for the week ending August 11 showed that overall purchase demand slumped by 26% compared to the same week a year ago. Purchase applications for a mortgage fell by 0.8% from the previous week, heading to its lowest level in nearly seven months.

The post Mortgage Rates Surge to 21-Year High appeared first on theprimarymarket.com.

Sam Khater, Freddie Mac’s chief economist, pins this surge on the effort to combat rising inflation. “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation,” Khater explained.

As a result, the demand for mortgages slumped to a 22-year low, with elevated borrowing costs and inventory shortages detracting potential buyers. Those buyers who remain in the market have consequently expressed less desire to make a bid on a property, thereby convincing property owners to reassess their asking prices.

Realtor.com reported that the median home price in the United States fell to $435,000 in August, down from July’s figure of $449,000. Robert Heck, the vice president of Morty, believes that this is only the start of the rise in mortgage rates following the increase at the start of 2022.

The post Mortgage Rates Close in on 14-Year Record appeared first on theprimarymarket.com.

This increase is a large factor that is contributing to the lack of affordability in the current housing market, with many property owners also putting off sales in anticipation of eased market conditions where they will be able to raise their asking prices thanks to an increase in demand.

According to Freddie Mac Chief Economist Sam Khater, the recent mortgage rate increase is a testament to the ongoing volatility of the property market. “Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer,” Khater commented.

The heightened mortgage rates have left prospective property buyers hesitant to make purchases, particularly owing to the resulting heightened borrowing costs. According to a Fannie Mae survey, only 17% of buyers believe that now is an opportune time to purchase a home; a 20% decline from the previous month.

The post Mortgage Rates Pass 5% This Week After Brief Dip appeared first on theprimarymarket.com.

Despite the positive signs on the horizon, homebuyers should completely relax. According to Freddie Mac’s chief economist Sam Khater, the current economic situation will continue to provide a fertile ground for mortgage rate volatility. 

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” Khater explained in a statement. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

While this week’s mortgage rate can seem attractive compared to the June peak of 5.81%, the number is still up 2.22% compared to 2021. This has caused a significant slowdown in home market activity and a drop in sales and mortgage demands.

The cooldown of the U.S. house market is expected to continue in the future as 40-year-high inflation and fears of recessions make Americans cautious of costs related to buying a home.

The post Mortgage Rates Dip Below 5% for the First Time in 4 Months appeared first on theprimarymarket.com.