Mortgage rates get controlled by a couple of factors in the live market, including the demand from the population. Below are some of the latest mortgage news.
The Rising Mortgage Rates Are Making Home Sellers Lower Their Ask Prices.
A total of 12% of homes for sale experienced a price drop during the four-week period that ended in April the previous year. It is up from 9% a year ago. The number of new listings also jumped 8% from a year ago. After the 30-year fixed mortgage rate reached 5% in the past couple of weeks, many buyers are worried about their financial situation.
According to reports from real estate companies, the housing market is starting to show signs of a break. There are more houses for sale and more people looking to buy. The number of houses for sale is still down from a year ago, but it’s expected to reach its peak by the summer. New listings tend to peak in May, and higher mortgage rates make houses more expensive. During the four-week average, 12% of homes for sale experienced a price drop, up from 9% a year ago. It suggests that the housing market is cooling.
It also shows that there’s a limit to the power of home sellers. They can no longer overprice their houses and expect buyers to come knocking at their door like they did previously. The rising mortgage rates also make it more expensive for people to buy.
According to the latest mortgage news from analysts and experts, the average rate on a 30-year fixed mortgage has risen to 5%. A survey conducted by mortgage finance companies have revealed that more consumers are worried about the housing market. The share of respondents who expect mortgage rates to increase has also risen. The rising mortgage rates and the increasing number of people worried about the housing market could cause the housing market to cool further.
Mortgage Demand Gets Pushed Down 40% More Than The Previous Year.
The average contract interest rate on 30-year fixed-rate mortgages rose to 4.59% from 4.80%, while the rate on 15-year fixed-rate loans increased to 3.64% from 3.33%. Refinance activity continued to decline, with the number of people refinancing falling by 10%. Rising interest rates are weighing on the mortgage market, causing many homeowners to become priced out of the market according to the latest mortgage news.
The share of mortgage applications decreased to 38.8% from 51% a year ago. The number of applications to purchase a home also declined 3% during the week. Despite the strong job market and continued wage growth, the supply of homes for sale is still meager.
The spike in the average purchase loan size and the decline in FHA purchase applications are indicators of the supply and affordability challenges facing first-time home buyers. It is causing mortgage companies to lay off employees. The volume of mortgage applications decreased by over 40% from April of the previous year. The points for loans with a 20% down payment also decreased.