Payne Capital Management President Ryan Payne weighed in on the U.S. economy, arguing that Americans’ purchasing power will continue to “strengthen.”
Important measures home purchase Applications surged last week as mortgage interest rates fell below 7% for the first time in more than a month.
Mortgage Bankers Association (MBA) Index Applying for a mortgage loan New data released Wednesday showed a 7.1% rise in the week ending March 8, compared with a 9.7% rise in the previous week.
The data also showed that the average interest rate on popular 30-year loans fell to 6.87% last week.
“Mortgage rates fell below 7% for most loan types last week. This was due to rising unemployment and a downward revision in employment growth in the previous month, a weak service sector and a less robust job market. “This is because economic data is coming in that shows that,” Mike said. Mr. Fratantoni is MBA’s chief economist.
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A home is on the market for sale in Cupertino, California on February 7th. (Lauren Elliott/Bloomberg via Getty Images/Getty Images)
Demand for housing paused earlier this year as interest rates rose, but is starting to pick up again as interest rates begin to fall. The number of applications for mortgage loans to purchase homes increased by 5% from the previous week. The number of applications decreased by 11% compared to the same period last year.
According to the survey, demand for refinancing also increased last week, increasing by 12% from the previous week. Compared to the same period last year, the number of refinance applications increased by he 5%.
“While these percentage increases are large, the level of refinancing activity remains fairly low, with much of this activity reflecting borrowers taking out loans at or near the highest rates of the past two years,” Fratantoni said. It is expected.”
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The housing market, which is sensitive to interest rates, is rapidly cooling down. federal reserve Aggressive tightening campaign. Policymakers have raised the benchmark federal funds rate 11 times in 16 meetings to quell stubborn inflation and slow the economy.
February 7th at a home in San Jose, California. (Lauren Elliott/Bloomberg via Getty Images/Getty Images)
Central bank officials have opened the door to lower interest rates this year, but have said they will not do so until they are confident that inflation can be overcome.
“The Committee does not believe it is appropriate to lower the target range until there is greater confidence that inflation is on a sustained path towards 2%.” Jerome Powell Fed Chairman Said last week meanwhile testify upon Houses of Parliament hill.
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Most economists now expect interest rate cuts to begin in June, with signs that inflation will remain abnormally high.
Rising mortgage rates are not only squeezing consumer demand, but also limiting inventory. That’s because the seller had previously fixed the mortgage interest rate low. COVID-19 pandemic With interest rates continuing to hover near 20-year highs, there is reluctance to sell, leaving eager buyers with few options.
According to another report published by Realtor.com, the supply of available housing is still down an astonishing 34.3% compared to normal supply before the pandemic began in early 2020.
