After falling for two consecutive weeks, US mortgage rates are now rising as the cost of homeownership continues to drive potential purchasers out of the housing market.
Because of this, some prospective purchasers are pulling out of transactions, which reduces competition and raises the number of houses up for sale.
The average rate for a 30-year fixed-rate mortgage is now 5.51 percent, up from 5.3 percent last week, according to the most recent Primary Mortgage Market Survey from Freddie Mac, which was issued on Thursday. The rate for the most popular mortgage product in America at this time last year averaged 2.88 percent.
The average rate for a 15-year fixed-rate note has also increased, moving from 4.45 percent to 4.67 percent in the past week. The 15-year rate for the same week in 2021 was 2.22 percent.
As a result of monetary and fiscal pulls, mortgage rates are erratic. Affordability continues to be the biggest barrier to homeownership for many Americans, with rates at their highest levels in more than a decade, home prices at record highs, and inflation still having an effect on consumers.
Affordability continues to be the biggest barrier to homeownership for many Americans, with rates at their highest levels in more than a decade, home prices at record highs, and inflation still having an effect on consumers.
The average purchase loan size has decreased from its record high of $460,000 in March, according to statistics from the Mortgage Bankers Association, to $415,000 for the week ending July 8.
The demand for mortgage applications has decreased in the interim for the last two weeks. It’s the newest indication that the housing market is slowing as Americans struggle with financial constraints brought on by 40-year high inflation and increasing interest rates that raise the cost of their mortgage payments on a monthly basis.
With about 60,000 house purchase agreements falling through in the previous month, home sale cancellations last month reached their highest rate since the beginning of the epidemic.