US mortgage rate climbs by most in two months
Demand takes another blow.
US mortgage rates increased last week by the most in two months to 6.43%, denting already sluggish demand.
The contract rate on a 30-year fixed mortgage rose 13 basis points, abruptly ending a five-week slide in borrowing costs, Mortgage Bankers Association data showed Wednesday. The group’s index of mortgage applications for home purchases dropped 10% in the week ended April 14, the steepest decline in two months.
High borrowing costs — now even higher — have not only stifled buyer activity over the past year but also discouraged many Americans from listing their homes in the first place, straining inventory and further limiting sales.
With the Federal Reserve set on taming inflation, and potentially raising interest rates even higher, it’s not clear when the housing market will manage to regain momentum.
The MBA’s index of refinancing applications also declined to the lowest level since early March.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
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