US mortgage rates have been steadily climbing for the past seven weeks, inching perilously close to the 8% mark, as revealed by Freddie Mac’s Primary Mortgage Market Survey (PMMS).
For an unprecedented seventh week in a row, mortgage rates have persistently surged, inching closer to a staggering 8%. This relentless ascent marks the lengthiest consecutive rise since the vibrant days of Spring in 2022. In just one year, the rates have surged by a whopping two percentage points!
Attention homebuyers! The 30-year fixed-rate mortgage has skyrocketed to a staggering 7.79% as of October 26, surpassing last week’s average of 7.63%. This notable increase is a clear indication of the upward trend in mortgage rates, with a significant rise from the same period last year when the rate was 7.08%. Don’t let this news discourage you from your dream home, but act fast to secure a favorable rate before it’s too late!
The mortgage market has seen a noteworthy shift, according to Freddie Mac’s PMMS report. The average 15-year fixed-rate mortgage has experienced a significant 11-basis-point increase, reaching 7.03% compared to the previous week. This change has caught the attention of Joel Kan, the deputy chief economist of the Mortgage Bankers Association, who attributes it to the surge in Treasury yields. This trend has raised concerns among global investors regarding the possibility of enduring higher rates and growing fiscal deficits. Kan emphasized that this increase in rates has been consistent for seven consecutive weeks, accumulating a total of 69 basis points. These developments highlight the dynamic nature of the financial landscape, making it crucial for both homeowners and potential buyers to stay informed and adapt to these changes to make informed decisions regarding their mortgages.
“As we head into Halloween, the impacts may scare potential homebuyers,” Khater added. “Purchase activity has slowed to a virtual standstill, affordability remains a significant hurdle for many, and the only way to address it is lower rates and greater inventory.”
Weekly mortgage applications dipped to their slowest pace since 1995, according to the MBA. Overall application activity was down 1%, with purchase applications down 2%. Refinance activity, however, increased 2%.
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