Mortgage interest rates for the US were again above 7%
The 30-year fixed rate mortgage was 7.1% on April 18, the highest level since November 30, 2023, when it was 7.22%. This was a gain of 22 basis points
For much of last week, 10-year Treasury yields, one of the mechanisms used to price mortgages, have been above 4.6% and at one point on April 16 were very close to 4.7%. Meanwhile, the difference between the interest rate and the 30-year FRM remains high.
The 15-year FRM posted a weekly increase of 23 basis points, from 6.16% to 6.39%, compared to 5.76% a year ago.
This is unlikely to be the peak of the current cycle, with differing opinions on whether this is holding back the housing market.
“With interest rates rising, potential homebuyers are deciding whether to buy before interest rates rise even further or wait in hopes of a decline later this year,” Sam Khater, Freddie Mac’s chief economist, said in a news release. “Purchase applications rose modestly last week, but it remains unclear how many homebuyers will be able to withstand rising rates in the future.”
The volume of purchase requests was
“Despite mortgage rates being at the highest levels last seen in December, mortgage applications have increased for two weeks in a row,” MBA President and CEO Bob Broeksmit said in a statement Thursday morning. “Recent economic data shows that the economy and labor market remain strong, meaning mortgage rates are likely to remain at these high levels for the foreseeable future.”
Another source, LenderPrice, as posted on the National Mortgage News website, had the 30-year FRM at 7.281% as of 11:40 a.m. on April 18, up from 7.067% a week earlier.
Redfin said the average daily mortgage rate was 7.4% last week, but buyers are still touring homes despite that increase. The Homebuyer Demand Index, a measure of agent tours, was at its highest level in seven months.
Some are looking to buy now because they fear mortgage rates could rise even further, while others have reportedly grown accustomed to the current environment and have reduced their budgets accordingly, Chen Zhao, Redfin’s head of economic research, said in a news release.