Posted on 03/01/2023 7:38:45 AM PST by Oldeconomybuyer
Mortgage rates moved higher again last week, pushing buyers back to the sidelines just as the spring housing market is supposed to be heating up.
Mortgage applications to purchase a home dropped 6% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 44% lower than the same week one year ago, and is now sitting at a 28-year low.
This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.71% from 6.62%, with points rising to 0.77 from 0.75 (including the origination fee) for loans with a 20% down payment. That is the highest rate since November of last year.
Mortgage rates have moved 50 basis points higher in just the past month. Last February, rates were in the 4% range.
“Data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates,” said Joel Kan, an MBA economist.
Applications to refinance a home loan fell 6% for the week and were 74% lower year over year.
(Excerpt) Read more at cnbc.com ...
THanks for the post. Wife and I want to move out of crime-ridden Pulaski County, but dont want to double our mortgage payment. Enjoying the 2% handle mortgage (thats free money!). 6%+ isn’t.
The pathetic POS enemdia leaves out the demented, braindead pervert’s out of of EVERY ONE of these “the economy sucks” stories... I loathe these scum.
What is a “handle mortgage”?
Blackrock is paying cash to help usher in a new woke feudalism! ;)
What is a “handle mortgage”?
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I believe it means a loan with a 2.## rate. The ‘2’ is the handle.
Starboard got it. 2 handle mortgage simply means I have a 2.xxx% mortgage. 2.125, 2.500, 2.875% etc.
Traditional families with a single income drove the traditional housing market. The future for single family homes is that they will become rentals, occupied beyond their design by either groups of singles who refuse to grow up, or by very large/multigenerational families who will be the slaves on the new plantation. Homes in more desirable locations will be stratospherically priced, and will be occupied by smaller households.
You can pay down interest, but never principle. Not sure why the average person doesn’t get that.
Won’t buy until prices normalize.
Wife and I currently have paid our home off but want to move to an area near some family. This news makes it sound like a lousy time to get a mortgage. Any suggestions on who I should talk to to see what my best options are.
“Mortgage demand from homebuyers drops to a 28-year low”
Brandon says that’s because of the great economy that HE created. Now, people are able to just pay CASH! /s
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