Currently Reading

Some Buyers Fear the End of Low Mortgage Rates is Here

Advertisement
Financing

Some Buyers Fear the End of Low Mortgage Rates is Here


June 23, 2021
person on phone with house figurine
Photo: osabee | stock.adobe.com

Both mortgage rates and applications to refinance a home loan increased slightly last week, reversing course of previous trends. Rates for 30-year fixed-rate mortgages reached their highest level in one month, says CNBC, going from 3.11% to 3.18% last week. Increases come after the Federal Reserve said rising interest rates could come in 2023. Refinance demand has consistently dropped, but the past few weeks’ interest rate actions could result in more homeowners applying for refinancing out of fear record low rates are at their end. 

Refinance demand had been falling sharply as rates rise but has improved in recent weeks. This may be because homeowners think rates are only going up, and it could be the last chance for the best deal. Rates set more than a dozen record lows last year, and refinance demand was huge. However, thousands of borrowers can still save now before rates move higher.

Mortgage applications to purchase a home increased 1% from the previous week and were 14% lower than a year ago. Buyers are hitting an affordability wall, as home prices keep rising quickly. A report on existing home sales in May showed the fourth straight month of declining home sales.

“Falling affordability is simply squeezing some first-time buyers out of the market.,” said Lawrence Yun, chief economist for the National Association of Realtors, which issued the report Tuesday.

Read More
 

Related Stories

New-Home Sales

More Americans Became Equity Rich During the Pandemic

The silver lining of record high home prices

Financing

Rising Mortgage Rates Mean High Prices but Less Competition

High mortgage signal less market competition, but some homebuyers may benefit more than others.

Market Data + Trends

September Market Growth Suggests Appreciation Balance

A modest slowdown could give buyers more selection.

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.