US Mortgage Demand Cooling As Loan Interest Rates Rise

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August 18 (UPI) – Experts said Wednesday that the US housing market has cooled slightly, mainly due to rising mortgage rates.

The Mortgage Bankers Association said in its weekly report that the number of applications for purchase has decreased by 1% – and by almost 20% since August 2020 – and the number of applications for refinancing has decreased by 5%.

The group said that simultaneously with the decline in the number of applications for mortgages with a fixed interest rate for 30 years, the rate increased from 2.99% to 3.06%.

A report on Wednesday noted that growth COVID-19 incidents in the United States also likely played a role in lowering demand.

“Mortgage rates were at their highest in about a month,” said Joel Kahn, junior vice president of economic and industry forecasts with an MBA. said in the statement.

“Mortgage rates followed a general increase in Treasury yields last week, which started with a strong July employment report and then slowed due to weaker consumer sentiment and concerns about rising COVID-19 cases.”

Kahn added that one of the reasons for the decline in refinancing is that there are fewer eligible homeowners.

The report said FHA filings were up 0.5% last week while VA filings were up 0.7%.

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