{"id":1517094,"date":"2022-06-15T12:04:05","date_gmt":"2022-06-15T16:04:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1517094"},"modified":"2022-06-15T12:04:19","modified_gmt":"2022-06-15T16:04:19","slug":"mortgage-rates-soar-to-highest-level-since-2008","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-soar-to-highest-level-since-2008\/","title":{"rendered":"Mortgage Rates Soar To Highest Level Since 2008"},"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%2Fmortgage-rates-soar-to-highest-level-since-2008%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=1517094&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--><p>The 30-year fixed <a href=\"http:\/\/dailywire.com\/topic\/housing\">mortgage rate<\/a> hit its highest <a href=\"http:\/\/dailywire.com\/topic\/economy\">level<\/a> since 2008, according to a Tuesday <a href=\"https:\/\/www.mba.org\/news-and-research\/newsroom\/news\/2022\/06\/15\/mortgage-applications-increase-in-latest-mba-weekly-survey\">report<\/a> from the Mortgage Bankers Association (MBA).<\/p>\n<p>The group\u2019s Weekly Mortgage Applications Survey \u2014 which covers 75% of American retail residential mortgage applications \u2014 discovered that rates increased for all loan types, including a jump to 5.65% for the benchmark 30-year fixed rate.<\/p>\n<p>\u201cMortgage rates followed Treasury yields up in response to higher-than-expected inflation and anticipation that the Federal Reserve will need to raise rates at a faster pace,\u201d MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said regarding the report.<\/p>\n<p>Mortgage rates were below 3% for most of the past two years amid aggressive monetary stimulus from the <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\">Federal Reserve<\/a>. Since the beginning of the year, rates surged from just over 3% to well over 5% earlier this month, according to <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\">data<\/a> from government-backed mortgage company Freddie Mac.<\/p>\n<p>The Consumer Price Index (CPI) increased <a href=\"https:\/\/www.dailywire.com\/news\/inflation-reaches-8-6-setting-new-four-decade-high\">8.6%<\/a> year-over-year as of May, while the Producer Price Index (PPI) \u2014 which monitors inflation for wholesalers \u2014 increased <a href=\"https:\/\/www.dailywire.com\/news\/inflation-for-businesses-continues-at-double-digit-pace\">10.8%<\/a> over the same period, according to the U.S. Bureau of Labor Statistics. As Kan mentioned, the Federal Reserve is currently <a href=\"https:\/\/www.cnbc.com\/2022\/06\/13\/fed-reportedly-may-hike-rates-by-three-quarters-of-a-point-this-week.html\">weighing<\/a> a 0.75% interest rate hike, after <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">increasing rates<\/a> by 0.5% last month and 0.25% three months ago.<\/p>\n<p>The MBA survey also found that refinancing activity plummeted 76% from one year ago. Indeed, real estate firms Redfin and Compass announced respective 8% and 10% <a href=\"https:\/\/www.cnbc.com\/2022\/06\/14\/real-estate-firms-compass-and-redfin-announce-layoffs-as-housing-market-slows.html\">cuts<\/a> to their workforces as <a href=\"https:\/\/www.dailywire.com\/news\/the-housing-market-reaches-an-affordability-turning-point\">mortgage activity declines and home sales slow<\/a>. Indeed, purchase applications declined more than 15% compared to last year as \u201congoing inventory shortages and affordability challenges have cooled demand, coinciding with the rapid jump in mortgage rates,\u201d according to Kan.<\/p>\n<p>\u201cThe U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006,\u201d Freddie Mac Deputy Chief Economist Len Kiefer <a href=\"https:\/\/www.dailywire.com\/news\/some-relief-possible-for-home-buyers-as-housing-market-poised-for-most-significant-contraction-since-2006\">argued<\/a> earlier this week. \u201cMortgage applications are pointing to a large decline over summer.\u201d<\/p>\n<p>Even for luxury homes \u2014 defined as the top 5% of the market \u2014 sales fell 18% from February to April 2022 compared to the same period last year, according to a report from Redfin obtained by <a href=\"https:\/\/www.wsj.com\/articles\/even-deep-pocketed-buyers-are-starting-to-back-away-from-the-u-s-housing-market-11654806570?mod=hp_featst_pos3\">The Wall Street Journal<\/a>. A <a href=\"https:\/\/www.dailywire.com\/news\/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory\">plummeting stock market<\/a> is likely worsening hesitation among luxury buyers. Other factors \u2014 including the <a href=\"https:\/\/www.dailywire.com\/news\/housing-prices-continue-to-soar-amid-supply-chain-inventory-crisis\">supply chain bottlenecks<\/a> and <a href=\"https:\/\/www.dailywire.com\/news\/america-is-short-one-million-construction-workers\">labor market shortages<\/a> that are applying upward pressure to overall inflation rates \u2014 continue to challenge the broader housing market.<\/p>\n<p>There are also mismatches between supply and demand that continue to plague the sector. Construction of new homes has <a href=\"https:\/\/www.housingwire.com\/articles\/us-housing-market-is-short-5-5-million-homes-nar-says\/\">already been slowing<\/a> over the past several decades \u2014 resulting in 6 million too few properties on the market. As The Daily Wire\u2019s Cabot Phillips <a href=\"https:\/\/www.dailywire.com\/news\/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high\">explained<\/a> earlier this year on \u201c<a href=\"https:\/\/www.dailywire.com\/podcasts\/morning-wire\">Morning Wire<\/a>,\u201d many experts believe that \u201cuntil the supply of houses meets the overwhelming demand that we\u2019re seeing right now, prices will continue to rise.\u201d<\/p>\n<p>The problem worsened during COVID-19 and the lockdown-induced recession. \u201cNew construction projects were halted across the board, and that means the number of houses now up for sale is far lower than usual,\u201d Phillips explained. \u201cAnd unfortunately on that front, it will likely take years for new home construction to once again meet demand.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 30-year fixed mortgage rate hit its highest level since 2008, according to a Tuesday report from the Mortgage Bankers Association (MBA). The group\u2019s Weekly Mortgage Applications Survey \u2014 which covers 75% of American retail residential mortgage applications \u2014 discovered that rates increased for all loan types, including a jump to 5.65% for the benchmark &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1517189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1517094","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\/1517094","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\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1517094"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1517094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1517189"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1517094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1517094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1517094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}