Home-purchase applications plummeted last week as higher mortgage weighed on buyer demand, according to a new survey from the Mortgage Bankers Association.
National Association of Home Builders CEO Jerry Howard breaks down April's housing market index, which showed new home starts rose slightly.
A key measure of home-purchase applications fell sharply last week as consumer demand cooled in the face of higher mortgage rates.tumbled 5.7%, according to new data published on Wednesday. "Mortgage application activity slowed, as most mortgage rates in the survey increased, with the 30-year fixed rate jumping nine basis points to its highest level in two months at 6.57 percent," said Joel Kan, MBA's deputy chief economist. "Purchase applications decreased 5 percent to its slowest pace in a month, as buyers remain wary of this rate volatility, but also as for-sale inventory in many parts of the country remains scarce.
Demand for refinancing also continued to plunge last week, tumbling another 8%, according to the survey. Compared with the same time last year, refinance applications are down a stunning 4%."Most borrowers have lower rates on their mortgages, and those who are in the market are extremely rate sensitive," Kan said.
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