Mortgage rates continued to move higher while mortgage applications dropped to the lowest level since 1996, according to the Mortgage Bankers Association (MBA). Meanwhile Freddie Mac reported today the average 30-year fixed rate mortgage reached 7.49 percent, up from 6.09 percent a year ago. This was just a fraction below the MBA’s reported average of 78.53 percent, the highest level since 2000.
Despite the rise in rates, home prices have barely moved, largely due to a lack of homes for sale. Many potential sellers who locked in a low mortgage rate before the pandemic began are now hesitant to sell.
In its report, Freddie Mac notes: “Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed. Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back buyer demand.”