{"id":1602791,"date":"2022-08-12T08:47:25","date_gmt":"2022-08-12T12:47:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1602791"},"modified":"2022-08-12T08:47:34","modified_gmt":"2022-08-12T12:47:34","slug":"mortgage-rates-surpass-5-again","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-surpass-5-again\/","title":{"rendered":"Mortgage Rates Surpass 5% Again"},"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\">10<\/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-surpass-5-again%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=1602791&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>Mortgage rates jumped back above 5%, after briefly and barely falling below that level last week.<\/p>\n<p>The rate on the 30-year fixed mortgage increased to 5.22% from 4.99% the week prior, according to <a href=\"https:\/\/www.freddiemac.com\/pmms\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Freddie Mac\" class=\"link\">Freddie Mac<\/a>. While the rate remains lower than the 5.81% registered in June, it\u2019s still 2 percentage points higher than the start of the year.<\/p>\n<p>The jump in rates is discouraging news for sidelined, price-shocked buyers, who are contending with tough affordability conditions. Meanwhile, homeowners are growing wary about selling, as the cooler market has forced some to lower their asking prices.<\/p>\n<p>\u201cThe 30-year fixed-rate went back up to well over 5% this week, a reminder that recent volatility remains persistent,\u201d said Freddie Mac Chief Economist Sam Khater, in a statement. \u201cDeclines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer.\u201d<\/p>\n<h2><strong>Homebuyers skittish amid higher rates<\/strong><\/h2>\n<p>Rates on mortgages fell below 5% last week for the first time since April, but that short reprieve did little to spur would-be buyers.<\/p>\n<p>Housing sentiment hit its <a href=\"https:\/\/money.yahoo.com\/housing-sentiment-decade-low-203654331.html\" data-ylk=\"slk:lowest point in a decade;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">lowest point in a decade<\/a> in July, according to a Fannie Mae survey. Only 17% of respondents said it\u2019s a good time to purchase a home, down from 20% the month prior, signaling how rising borrowing costs have quickly doused the once-blistering housing market.<\/p>\n<p>The volume on purchase applications also decreased 1% from one week earlier, according to the Mortgage Bankers Association survey for the week ending <a href=\"https:\/\/www.mba.org\/news-and-research\/newsroom\/news\/2022\/08\/10\/mortgage-applications-increase-in-latest-mba-weekly-survey\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:August 5\" class=\"link\">August 5<\/a>, and was 19% lower than the same week one year ago. Activity has now fallen in five of the last six weeks, as affordability pressures concern buyers.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\">\n<div>\n<div class=\"caas-img-container caas-img-loader\"><noscript><img decoding=\"async\" alt=\"SAN FRANCISCO, CALIFORNIA - JULY 14: A sign is posted in front of a home for sale on July 14, 2022 in San Francisco, California. The number of homes for sale in the U.S. increased by 2 percent in June for the first time since 2019. High interest rates coupled with a faltering economy and surging home prices have kept many homebuyers out of the market. (Photo by Justin Sullivan\/Getty Images)\" src=\"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2022\/08\/12084729\/bdcb54f0-1979-11ed-b097-011ab3931163\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">A sign is posted in front of a home for sale on July 14, 2022 in San Francisco, California. The number of homes for sale in the U.S. increased by 2 percent in June for the first time since 2019. High interest rates coupled with a faltering economy and surging home prices have kept many homebuyers out of the market. (Photo by Justin Sullivan\/Getty Images)<\/figcaption><\/p>\n<\/figure>\n<p>\u201cHigher interest rates are impacting home affordability and represent a real drag on those first-time homebuyers,\u201d Jeffrey Ruben, president of WSFS Mortgage, told Yahoo Money. \u201cBut they have not yet choked off the man to the point where you don\u2019t see people buying. It just means being a little bit more cautious and measured on what you can afford and what you can buy.\u201d<\/p>\n<p>Those looking to purchase also may have a harder time qualifying for a mortgage. Credit availability for mortgages fell to its lowest level since May 2013 last month \u2014 down 9% from the month prior, the MBA reported \u2014 an indication that lending standards are tightening.<\/p>\n<p>\u201cLenders have responded accordingly to the decrease in demand for refinance and purchase loans by reducing loan offerings, including ARMs, cash-out refinances, and investment properties,\u201d Joel Kan, MBA\u2019s associate vice president of economic and industry forecasting, said in a news release.<\/p>\n<h2><strong>Home sellers are pricing down listings<\/strong><\/h2>\n<figure class=\"caas-figure\">\n<div>\n<div>\n<div class=\"caas-img-container caas-img-loader noheight\"><img class=\"caas-img caas-lazy has-preview\" alt=\"Only about 8% of Broward households can afford a single-family home at the median sale price. Experts worry how that might affect the area&#039;s service and hospitality workforces -- major pillars of the local economy. (Mike Stocker\/Sun Sentinel\/Tribune News Service via Getty Images)\" data-src=\"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2022\/08\/12084733\/9402aac0-f6e1-11ec-babf-7af93ea50372\" src \/><noscript><img decoding=\"async\" alt=\"Only about 8% of Broward households can afford a single-family home at the median sale price. Experts worry how that might affect the area&#039;s service and hospitality workforces -- major pillars of the local economy. (Mike Stocker\/Sun Sentinel\/Tribune News Service via Getty Images)\" src=\"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2022\/08\/12084733\/9402aac0-f6e1-11ec-babf-7af93ea50372\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Only about 8% of Broward households can afford a single-family home at the median sale price. Experts worry how that might affect the area&#8217;s service and hospitality workforces &#8212; major pillars of the local economy. (Mike Stocker\/Sun Sentinel\/Tribune News Service via Getty Images)<\/figcaption><\/p>\n<\/figure>\n<p>To attract buyers, more home sellers are reducing their listing prices.<\/p>\n<p>The percentage of homes with a price reduction increased to 19.1% in July from 14.9% in June and is close to typical 2017 to 2019 levels, according to <a href=\"https:\/\/www.realtor.com\/research\/july-2022-data\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Realtor.com\" class=\"link\">Realtor.com<\/a>. The median home price for active listings declined to <a href=\"https:\/\/www.realtor.com\/research\/july-2022-data\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:$449,000\" class=\"link\">$449,000<\/a> in July, down from a record-high of $450,000 in June.<\/p>\n<p>That\u2019s showing up as dollars lost at closing for sellers, who may feel they missed out on the hot market. The average purchase price among homes being financed fell by <a href=\"https:\/\/investor.blackknightinc.com\/press-releases\/news-details\/2022\/Black-Knight-Originations-Market-Monitor-Mortgage-Production-Continues-to-Decline-With-Purchase-Demand-Now-Falling-Below-Pre-Pandemic-Levels\/default.aspx\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:another $10,000\" class=\"link\">another $10,000<\/a> (-2.2%) in July and is now down by more than $31,000 (-6.6%) since March, according to Black Knight.<\/p>\n<p>The percentage of homeowners who believe it\u2019s a good time to sell continued to deteriorate, according to Fannie Mae\u2019s confidence index, falling to 67% in July from 76% in May.<\/p>\n<p>\u201cMortgage rates are really the driving force behind why sellers are having to drop that price,\u201d Daryl Fairweather, chief economist at Redfin, told Yahoo Money. \u201cBuyers oftentimes just can\u2019t keep up with that kind of money and they end up dropping out of the housing market or getting a lot more frugal. That means sellers have to meet buyers where they\u2019re at.\u201d<\/p>\n<p><em>Gabriella is a personal finance reporter at Yahoo Money. Follow her on Twitter <\/em><a href=\"https:\/\/twitter.com\/__gabriellacruz\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:@__gabriellacruz\" class=\"link\"><em>@__gabriellacruz<\/em><\/a><em>.<\/em><\/p>\n<p><a href=\"https:\/\/money.yahoo.com\/\" data-ylk=\"slk:Read the latest personal finance trends and news from Yahoo Money.\" class=\"link\"><strong>Read the latest personal finance trends and news from Yahoo Money.<\/strong><\/a><\/p>\n<p><strong><em>Follow Yahoo Finance on <\/em><\/strong><a href=\"https:\/\/twitter.com\/YahooFinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Twitter\" class=\"link\"><strong><em>Twitter<\/em><\/strong><\/a><strong><em>, <\/em><\/strong><a href=\"https:\/\/www.instagram.com\/yahoofinance\/?hl=en\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Instagram\" class=\"link\"><strong><em>Instagram<\/em><\/strong><\/a><strong><em>, <\/em><\/strong><a href=\"http:\/\/youtube.com\/c\/yahoofinance?sub_confirmation=1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YouTube\" class=\"link\"><strong><em>YouTube<\/em><\/strong><\/a><strong><em>, <\/em><\/strong><a href=\"https:\/\/www.facebook.com\/yahoofinance\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Facebook\" class=\"link\"><strong><em>Facebook<\/em><\/strong><\/a><strong><em>, <\/em><\/strong><a href=\"https:\/\/flipboard.com\/topic\/yahoofinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Flipboard\" class=\"link\"><strong><em>Flipboard<\/em><\/strong><\/a><strong><em>, and <\/em><\/strong><a href=\"https:\/\/www.linkedin.com\/company\/yahoo-finance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LinkedIn\" class=\"link\"><strong><em>LinkedIn<\/em><\/strong><\/a><strong><em>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mortgage rates jumped back above 5%, after briefly and barely falling below that level last week.The rate on the 30-year fixed mortgage increased to 5.22% from 4.99% the week prior,<\/p>\n","protected":false},"author":1,"featured_media":1602888,"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-1602791","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\/1602791","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1602791"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1602791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1602888"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1602791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1602791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1602791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}