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Mortgage rates hit their highest level in over a year
cnbc.com • • business
Key Points:
- Mortgage application volume fell 2.9% last week, marking the first annual decline since April, as mortgage rates rose to their highest level in over a year, according to the Mortgage Bankers Association (MBA).
- The average interest rate for a 30-year fixed mortgage increased to 6.81%, contributing to a 2% drop in refinance applications and a 4% decline in purchase mortgage applications week-over-week.
- Higher mortgage rates have reduced overall demand, with refinance applications down 9% and purchase applications down 3% compared to the same week last year.
- Despite increased housing supply and longer market times, high prices combined with rising rates continue to deter buyers, offsetting potential savings from negotiations.
- Mortgage rates began to decrease early this week due to easing geopolitical tensions and lower oil prices, bringing the average 30-year fixed rate down to its lowest level in over two weeks.
