US Mortgage Rates Top 7% Again, Weakening Demand for Homes.

BOARD of Governors of the Federal Reserve System (U.S.); MORTGAGE rates; FIXED rate mortgages; RESIDENTIAL mortgages; HOUSE buying

US mortgage rates reached over 7% last week, resulting in a decline in home purchase applications. The contract rate for a 30-year fixed mortgage increased by 10 basis points to 7.01%, leading to a 4.7% decrease in the Mortgage Bankers Association's index of mortgage applications for home purchases. However, there has been some positive momentum in home sales, as people are becoming more accustomed to higher mortgage rates. The Federal Reserve has not yet lowered interest rates to combat inflation, and policymakers will assess consumer prices in upcoming data. Despite the decline in home purchase applications, the overall index of applications saw a slight increase due to a rise in refinancing activity. The Mortgage Bankers Association's survey, which has been conducted since 1990, includes responses from mortgage bankers, commercial banks, and thrifts, covering more than 75% of all retail residential mortgage applications in the US. [Extracted from the article]

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