Mortgage rates ratchet up yet again, this week the 30 year moves to a national average of 6.42. The 10Y bond fell today after a rally this week, sending yields back to the 4.6 range. There is plenty of pressure in the bond market to push mortgage rates upwards yet.
While mortgage purchase applications did jump from last week, it’s not all that significant, they remain down 3.6% YOY.
The MBA’s purchase mortgage index, regarded as a timely gauge of U.S. home sales, rose 6.4 percent last week to 465.7.
Even though the purchase index rose for the first time in three weeks, home purchase applications remain 3.6 percent below their-year ago level, Jay Brinkmann, MBA’s vice president of research and economics, said in a statement accompanying the data. MBA data shows that the 30-year rate stood at 5.69 percent one year ago
The group’s index of refinancing applications dropped 3.4 percent to 1,798.8, its third consecutive weekly decline.
The raise of mortgage rate is important. However I believe the bubble driven by consumer psychology. I believe the bubble bursting news from the media is going to be the beginning of the end.
Agree 100%, consumer psychology is king here. However, what the lending gods giveth, the lending gods taketh away. In the short term, rising mortgage rates push the limits of affordability by increasing the cost of buying a home. I wouldn’t call those conditions conducive to positive buyer psychology.
What do you think the impact will be on the Mortgage rate as many international investors declined to buy Treasuries?
In early 1990’s bear housing market interest rates dropped while home prices fell.
The fools are rushing out the door at the same time.
Don’t save’em. let’em sink.