Mortgage Rates Hit a 16-Year High of 6.75%. Here’s What That Means for the Industry.
The impact of the monthly employment report remains to be seen.
It’s a tough time to be a prospective homebuyer.
The 30-year fixed interest rate hit a 16-year high of 6.75%, driving down the total mortgage application volume by 14.2% for the week, according to a report from released on Wednesday.
Related: What Is a Housing Market Recession?
The skyrocketing rates have coincided with one of the deadliest hurricanes on record in the U.S. — another reason for the application decrease. According to MBA economist Joel Kan, applications in Florida fell 31% compared to 14% overall, on a non-seasonally adjusted basis.
Year over year, mortgage applications plunged 37%.
Of course, higher interest rates mean homebuyers need to pay even more to secure a property in an already expensive market. As a result, adjustable-rate mortgages, which offer a lower interest rate, have become more popular, with month-over-month share of activity up more than 3%, from 8.5% to 11.8%.
In August, the number of applications for adjustable-rate mortgages was the highest it’s been in 15 years, per research from .
Related:
The upcoming release of the monthly employment report will likely have an impact on mortgage rates as well, per , with the outcome largely determined by how investors and the Federal Reserve react to the results.
It’s a tough time to be a prospective homebuyer.
The 30-year fixed interest rate hit a 16-year high of 6.75%, driving down the total mortgage application volume by 14.2% for the week, according to a report from released on Wednesday.
Related: What Is a Housing Market Recession?
The skyrocketing rates have coincided with one of the deadliest hurricanes on record in the U.S. — another reason for the application decrease. According to MBA economist Joel Kan, applications in Florida fell 31% compared to 14% overall, on a non-seasonally adjusted basis.
Year over year, mortgage applications plunged 37%.
Of course, higher interest rates mean homebuyers need to pay even more to secure a property in an already expensive market. As a result, adjustable-rate mortgages, which offer a lower interest rate, have become more popular, with month-over-month share of activity up more than 3%, from 8.5% to 11.8%.
In August, the number of applications for adjustable-rate mortgages was the highest it’s been in 15 years, per research from .
Related:
The upcoming release of the monthly employment report will likely have an impact on mortgage rates as well, per , with the outcome largely determined by how investors and the Federal Reserve react to the results.
