Mortgage rates were back over 7% for the
The 30-year fixed rate mortgage was 7.1% on April 18, the highest level since Nov. 30, 2023, when it was at 7.22%. This was a 22 basis point gain
For much of the past week, the benchmark 10-year Treasury yield, one of the mechanisms used to price mortgage loans, was over the 4.6% level and at one point on April 16, was very close to 4.7%. Meanwhile the spread between the yield and the 30-year FRM remains elevated.
The 15-year FRM recorded a 23 basis point week-to-week increase, to 6.39% from 6.16%, whereas one year ago, it was 5.76%.
This is likely not the peak for the current cycle with divergent views on whether this is holding back the housing market.
"As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year," said Sam Khater, Freddie Mac's chief economist, in a press release. "Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future."
Purchase application volume was
"Despite mortgage rates being at highs last seen in December, mortgage applications have increased for two consecutive weeks," MBA President and CEO Bob Broeksmit said in a Thursday morning statement. "Recent economic data shows that the economy and job market remain strong, which is likely to keep mortgage rates at these elevated levels for the near future."
Another source, LenderPrice, as posted on the National Mortgage News website, had the 30-year FRM at 7.281% at 11:40 a.m. on April 18, versus 7.067% one week prior.
Redfin said the average daily mortgage rate for the past week topped 7.4% but buyers are still touring homes despite that increase. Its Homebuyer Demand Index, a measure of tours given by its agents, was at the highest level in seven months.
Some are looking to buy now because of worries that mortgage rates could go even higher, while others have reportedly grown accustomed to the current environment and pushed down their budget accordingly, Chen Zhao, Redfin's economic research lead, said in a press release.
