{"id":1691588,"date":"2022-10-15T21:08:47","date_gmt":"2022-10-16T01:08:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1691588"},"modified":"2022-10-15T21:08:56","modified_gmt":"2022-10-16T01:08:56","slug":"mortgage-rates-close-in-on-7","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-close-in-on-7\/","title":{"rendered":"Mortgage Rates Close in on 7%"},"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\">12<\/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-close-in-on-7%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=1691588&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 hit their highest point in 20 years this week, coming within a hair of 7% and further crushing many homebuyers&#8217; dreams.<\/p>\n<p>The average rate on the 30-year fixed mortgage jumped to 6.92% from 6.66% last week, according to Freddie Mac. Rates have increased more than a full point since the start of September and are now more than double where they were at the beginning of the year.<\/p>\n<p>Quickly escalating rates \u2014 coupled with elevated home prices and tight inventory \u2014 are forcing budget-conscious buyers to put off their purchase plans, while those who remain are using the weakened demand to their advantage \u2013 negotiating deals with sellers before they are priced out of the market.<\/p>\n<p>&#8220;Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April 2002,&#8221; Freddie Mac Chief Economist Sam Khater said in a news statement. &#8220;We continue to see the tale of two economies in the data: strong job and wage growth are keeping consumers&#8217; balance sheets positive, while lingering inflation, recession fears, and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important for the economy and the housing market.&#8221;<\/p>\n<p><strong>Homebuyers pushed aside<\/strong><\/p>\n<p>With rates now 3.7 percentage points higher than they were from the start of the year, trouble in the housing market continues to brew.<\/p>\n<p>Homebuyer demand remains at a 22-year low, the <a href=\"https:\/\/www.mba.org\/news-and-research\/newsroom\/news\/2022\/10\/12\/mortgage-applications-decrease-in-latest-mba-weekly-survey\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Mortgage Bankers Association\" class=\"link\">Mortgage Bankers Association<\/a> survey for the week ending October 7 found. The volume of mortgage applications for purchases decreased 2% from a week earlier, and are down 39% from a year ago.<\/p>\n<p>At the same time, <a href=\"https:\/\/finance.yahoo.com\/news\/housing-pending-home-sales-drop-140030400.html\" data-ylk=\"slk:pending home sales;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link yahoo-link\">pending home sales<\/a> in August \u2013 an indicator of housing health \u2013 also dropped 2%, marking the third straight month of declines. Contract signings were down 24.2% year over year.<\/p>\n<p>\u201cHomebuyers are very aware that interest rates have gone up,\u201d Adriana Perezchica, president of Via Real Estate in Washington State, told Yahoo Money. \u201cThe first question they ask is what their monthly payment will look like.\u201d<\/p>\n<p>Realtor Steve Bremis (L) talks to house hunters Makayla Gavitt (C) and David Harris during an open house at a condominium unit in Somerville, Massachusetts. (Credit: Brian Snyder, REUTERS)<\/p>\n<p>The monthly mortgage payment for a median-priced home of $427,000 with a 20% down payment at the current rate is $2,254, according to <a href=\"http:\/\/realtor.com\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Realtor.com\" class=\"link\">Realtor.com<\/a>. That&#8217;s 75% more from the same week last year, and adds about $11,600 to the yearly burden of financing a home.<\/p>\n<p>And now, potential buyers are likely to have a harder time qualifying for a mortgage.<\/p>\n<p>Mortgage credit availability fell 5.4% to an index reading of 102.5 in September, MBA <a href=\"https:\/\/www.mba.org\/news-and-research\/newsroom\/news\/2022\/10\/11\/mortgage-credit-availability-decreased-in-september\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:data\" class=\"link\">data<\/a> found, its lowest level since March 2013. A decrease in the index indicates that lending standards are tightening.<\/p>\n<p>Lenders have been harsher about requirements on government-backed loans, which are often favored by first-time homebuyers, declining 5.7% in September. That\u2019s the seventh month of declines in the last eight months.<\/p>\n<p>\u201cThere were a lot of people that were content in their home, and when they decided to move up they realized what the reality<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mortgage rates hit their highest point in 20 years this week, coming within a hair of 7% and further crushing many homebuyers&#8217; dreams. The average rate on the 30-year fixed mortgage jumped to 6.92% from 6.66% last week, according to Freddie Mac. Rates have increased more than a full point since the start of September &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1888766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1691588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1691588","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=1691588"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1691588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1888766"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1691588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1691588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1691588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}