{"id":46342,"date":"2022-06-11T16:02:59","date_gmt":"2022-06-11T16:02:59","guid":{"rendered":"https:\/\/harchi90.com\/housing-market-mortgage-rates-jump-again-to-5-23-pricing-out-buyers\/"},"modified":"2022-06-11T16:02:59","modified_gmt":"2022-06-11T16:02:59","slug":"housing-market-mortgage-rates-jump-again-to-5-23-pricing-out-buyers","status":"publish","type":"post","link":"https:\/\/harchi90.com\/housing-market-mortgage-rates-jump-again-to-5-23-pricing-out-buyers\/","title":{"rendered":"Housing market: Mortgage rates jump again to 5.23%, pricing out buyers"},"content":{"rendered":"<div>\n<p>After a slight dip, US mortgage rates jumped up again Thursday ahead of the Federal Reserve&#8217;s meeting next week when it&#8217;s expected to announce another big, half-point hike to its main borrowing rate. <\/p>\n<p><b>What&#8217;s happening: <\/b>The 30-year fixed-rate mortgage averaged 5.23% as of Thursday, up from last week when it averaged 5.09%, Freddie Mac reported. <\/p>\n<ul>\n<li id=\"sLD622\">A year ago, the average rate was below 3% &#8211; 2.96% &#8211; after the Federal Reserve dropped rates amid COVID-19.  Now, as the Federal Reserve hopes to tamp down 40-year-high levels of inflation, it&#8217;s dialing up the pressure by hiking borrowing rates. <\/li>\n<li id=\"Kx6tj0\">Up until April, the last time the average rate topped 5% was over 10 years ago. <\/li>\n<\/ul>\n<p><b>What they&#8217;re saying: <\/b>\u201cAfter little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data,\u201d Sam Khater, Freddie Mac&#8217;s chief economist, said in a prepared statement Thursday.<\/p>\n<p>The impact, Khater predicted, will be tempered demand and a cooling of price growth to pre-pandemic levels. <\/p>\n<ul>\n<li id=\"xIrtLH\">  &#8220;The housing market is incredibly rate-sensitive, so as mortgage rates increase suddenly, demand again is pulling back.  The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home. &#8220;<\/li>\n<\/ul>\n<p><b>Impact to the housing market: <\/b>The rate hikes, compounded with consistently rising housing prices, continue to price would-be homebuyers out of the market. <\/p>\n<p>And it&#8217;s starting to take a toll on demand. <\/p>\n<ul>\n<li id=\"Alzfit\">Mortgage applications fell 6.5% from a week prior, the Mortgage Bankers Association reported Wednesday.  On a seasonally unadjusted scale, the index dropped 17% compared to the previous week. <\/li>\n<\/ul>\n<p>It&#8217;s the lowest level the Mortgage Bankers Association index has seen in more than two decades, according to Joel Kan, the association&#8217;s vice president of economic and industry forecasting. <\/p>\n<p>\u201cWeakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years,\u201d Kan said.  \u201dThe 30-year fixed rate increased to 5.4% after three consecutive declines.  While rates were still lower than they were four weeks ago, they remained high enough to still suppress refinance activity.  Only government refinances saw a slight increase last week. &#8220;<\/p>\n<p>Meanwhile, low inventory is feeding competition and sky-high prices are pinching buyers.<\/p>\n<ul>\n<li id=\"wAfSBA\">\u201cThe purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past two months,\u201d Kan said.  &#8220;These worsening affordability challenges have been particularly hard on prospective first-time buyers.&#8221;<\/li>\n<\/ul>\n<p>However, as high mortgage rates begin to cool the market, inventory is starting to see an uptick.  And yet, since the US housing market &#8211; especially high-growth cities in the West like Utah &#8211; have faced housing shortages, housing experts don&#8217;t predict widespread home price drops, only price deceleration to match pre-pandemic trajectories. <\/p>\n<p><b>Contributing:<\/b> Associated Press<\/p>\n<\/p><\/div>\n<p><script><\/p>\n<p>  window.fbAsyncInit = function() {\n      FB.init({<\/p>\n<p>              appId : '528443600593200',<\/p>\n<p>          xfbml : true,\n          version : 'v2.9'\n      });\n  };<\/p>\n<p>  (function(d, s, id){\n     var js, fjs = d.getElementsByTagName(s)[0];\n     if (d.getElementById(id)) {return;}\n     js = d.createElement(s); js.id = id;\n     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n     fjs.parentNode.insertBefore(js, fjs);\n   }(document, 'script', 'facebook-jssdk'));\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a slight dip, US mortgage rates jumped up again Thursday ahead of the Federal Reserve&#8217;s meeting next week when it&#8217;s expected to announce another big, half-point hike to its main borrowing rate. What&#8217;s happening: The 30-year fixed-rate mortgage averaged 5.23% as of Thursday, up from last week when it averaged 5.09%, Freddie Mac reported. &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/housing-market-mortgage-rates-jump-again-to-5-23-pricing-out-buyers\/\"> <span class=\"screen-reader-text\">Housing market: Mortgage rates jump again to 5.23%, pricing out buyers<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/deseret.brightspotcdn.com\/dims4\/default\/1ae47c6\/2147483647\/strip\/true\/crop\/3000x1713%200%20285\/resize\/1461x834!\/quality\/90\/?url=https:\/\/cdn.vox-cdn.com\/thumbor\/ttC942LC4X9tWOjh-BJPrlpSJhE=\/0x0:3000x2281\/3000x2281\/filters:focal(1500x1141:1501x1142)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/23619767\/merlin_2926231.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/46342"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=46342"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/46342\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=46342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=46342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=46342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}