In its latest Primary Mortgage Market Survey, the Federal Home Loan Mortgage Corporation (Freddie Mac) revealed that 30-year fixed rate mortgages averaged 7.49 per cent, up from last week when they were 7.31 per cent. A year ago, the average was 6.66 per cent.
Applications drop to 27-year low
A separate weekly survey from the Mortgage Bankers Association (MBA) also revealed soaring rates and plummeting applications.
The MBA reported that the average rate for 30-year fixed rate mortgages was 7.53 per cent, up from 7.41 per cent last week. The average rate for the 15-year equivalents rose to 6.86 per cent, the highest level since July 2001, from 6.73 per cent.
The survey also revealed that mortgage applications had fallen by six per cent from one week earlier.
Joel Kan, MBA’s vice president and deputy chief economist, said: “Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields. Rates for all mortgage products increased, with the 30-year fixed mortgage rate increasing for the fourth consecutive week to 7.53 per cent – the highest rate since 2000.
“As a result, mortgage applications grounded to a halt, dropping to the lowest level since 1996. The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market.”
