{"id":1483768,"date":"2022-05-19T07:49:17","date_gmt":"2022-05-19T11:49:17","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1483768"},"modified":"2022-05-19T07:49:45","modified_gmt":"2022-05-19T11:49:45","slug":"with-rates-near-13-year-highs-mortgage-demand-plummets","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/with-rates-near-13-year-highs-mortgage-demand-plummets\/","title":{"rendered":"With Rates Near 13-Year Highs, Mortgage Demand Plummets"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwith-rates-near-13-year-highs-mortgage-demand-plummets%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1483768&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Structured Finance Association CEO Michael Bright weighs in as home prices skyrocket across the nation on &#8216;Fox Business Tonight.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Homebuyer demand for <a href=\"https:\/\/www.foxbusiness.com\/category\/mortgage\" target=\"_blank\" rel=\"noopener\">mortgages<\/a> tumbled last week as the average interest rate on the most popular U.S. home loan hovered near a 13-year high, a sign the red-hot housing market may be starting to cool off, according to new data from the Mortgage Bankers Association.\u00a0<\/p>\n<p>Mortgage applications to purchase a home dropped 12% on a weekly basis and are down 15% compared with the same week one year ago. It marked the first time in three weeks that monthly mortgage demand fell.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/biden-favorite-economist-mark-zandi-recession\" target=\"_blank\" rel=\"noopener\"><strong><u>ONE OF BIDEN&#8217;S FAVORITE ECONOMISTS SEES A HIGH CHANCE OF RECESSION IN NEXT 2 YEARS<\/u><\/strong><\/a><\/p>\n<p>Although mortgage rates have receded slightly from the record high notched last week, the average rate on the 30-year loan is still around 5.378%. By comparison, just one year ago, the 30-year rate stood at 3.00%. Since the start of the year, rates have jumped 2% \u2013 the fastest pace of growth since May 1994.\u00a0<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/07\/931\/523\/AP20184531446730.jpg?ve=1&#038;tl=1\" alt=\"Mortgage rates rising\" \/><\/div>\n<div class=\"caption\">\n<p><span>This May 22, 2020 file photo shows a sold sign in front of a house in Brighton, N.Y. Long-term U.S. mortgage rates fell this week with the benchmark 30-year home loan hitting its lowest level ever.\u00a0<\/span><span> ((AP Photo\/Ted Shaffrey, File) \/ AP Newsroom)<\/span><\/p>\n<\/div>\n<\/div>\n<p>&#8220;Purchase applications fell 12% last week, as prospective homebuyers have been put off by the higher rates and worsening affordability conditions,&#8221; said Joel Kan, an associate vice president of economic and industry forecasting at MBA. &#8220;General uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.&#8221;<\/p>\n<p>With mortgage rates rising, refinance activity is also plunging: Applications to refinance a home loan dropped another 10% week to week. In all, refinance demand is down 76% compared to one year ago.<\/p>\n<p>The latest data comes as the Federal Reserve looks to calm the housing market that lit up during the COVID-19 pandemic, as well as bring down sky-high inflation.\u00a0<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/06\/931\/523\/federal-reserve-Getty.jpg?ve=1&#038;tl=1\" alt=\"Federal Reserve\" \/><\/div>\n<div class=\"caption\">\n<p><span>A man wearing a mask walks past the U.S. Federal Reserve building in Washington D.C., the United States, on April 29, 2020.\u00a0<\/span><span> ((Xinhua\/Liu Jie via Getty Images) \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p>Policymakers lifted the benchmark federal funds rate by a half point earlier this month and are widely expected to approve at least two more, similarly sized hikes at their upcoming meetings in June and July. Following the 50-basis point increase in May, mortgage rates climbed to 5.3%, according to the mortgage financier Freddie Mac.<\/p>\n<p>Fed Chairman Jerome Powell reiterated that sentiment on Tuesday during a Wall Street Journal live event, pledging to &#8220;keep pushing&#8221; until inflation falls back in line with the central bank&#8217;s 2% target. Hiking interest rates tends to create higher rates on consumer and business loans, which slows the economy by forcing employers to cut back on spending.<\/p>\n<p><a href=\"http:\/\/foxbusiness.com\/\" target=\"_blank\" rel=\"noopener\"><strong><u>CLICK HERE TO READ MORE ON FOX BUSINESS<\/u><\/strong><\/a><\/p>\n<p>&#8220;What we need to see is inflation coming down in a clear and convincing way and we\u2019re going to keep pushing until we see that,&#8221; Powell said. &#8220;If that involves moving past broadly understood levels of neutral we won\u2019t hesitate at all to do that.&#8221; \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Structured Finance Association CEO Michael Bright weighs in as home prices skyrocket across the nation on &#8216;Fox Business Tonight.&#8217; Homebuyer demand for mortgages tumbled last week as<\/p>\n","protected":false},"author":489,"featured_media":1483868,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1483768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1483768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/489"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1483768"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1483768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1483868"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1483768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1483768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1483768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}