The mortgage rate for a 30-year home loan averaged 6.81% this week, the highest level recorded so far this year, according to the National Association of Realtors. As a result, mortgage applications for home purchases fell 5% last week, and the average loan size for a purchase application dropped to $423,500, its lowest level since January.
Housing affordability remains one of the biggest barriers to homeownership for many Americans, but housing experts say buyers seem to be adjusting to higher rates. Home sales have kept a steady pace over the past several months despite week-to-week fluctuations in mortgage rates between 6% and 7%.
Mortgage applications for home purchases are fluctuating—dipping 5% last week, according to the Mortgage Bankers Association—with the movement in borrowing costs. “Rates are still over a percentage point higher than a year ago, and housing affordability is still a challenge in many parts of the country,” Joel Kan, deputy chief economist at the Mortgage Bankers Association, said in a statement.
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