New Mortgages Begin To Slow As Interest Rates Climb

Submitted by News Desk on

Applications to refinance a home fell 5% las week and new mortgages for home buying are down 2% compared to last week and 19% slower than this time last year.  The 30-year fixed mortgage interest rate rose to 3.06%, up from 2.99%.  Mortgage rates followed the overall rise in Treasury yields last week.

Home loan refinancing is highly sensitive to interest rates and are lower both from last week and are down 8% from this time last year.  Home buyers have begun slowing down on how fast they snap up homes, often without ever seeing it in person.  According tot he National Association of Realtors, last year 67% of out-of-state home buyers bought a house without first seeing it in person and waived home inspections or appraisals.  But that is changing and home sales have been slowing decreasing for the last several weeks.