Mortgage rates’ up and downs spur market uncertainty

TRD New York /
Jul.July 03, 2013 11:00 AM

Volatile mortgage rates are holding back both homeowners looking to refinance and prospective buyers, new data from the Mortgage Bankers Association shows.

The average rate on the 30-year fixed conforming loan reached its highest level in two years last week, causing refinancing applications to drop by 16 percent and purchasing applications by 3 percent, according to the figures, cited by CNBC.

Meanwhile, real estate website Zillow showed mortgage rates moving off their highs but not by much.

Compared to early May, mortgage rates have risen about a full percentage point. That’s a 15 percent jump in monthly payments for the average homebuyer, CNBC said.

“Applications for new home purchases have continued to move sideways over the last month, but that may be people are rushing to buy or lock in mortgage rates before rates move even higher,” Michelle Girard of RBS Securities told CNBC. “It may be that there is going to a bit of a lag effect. I still think rates are historically low, and we are in an improving economy, although a gradual one, the recovery can continue, maybe the pace will moderate — but I do not think the back up in mortgage rates is going to derail the housing recovery.” [CNBC]Mark Maurer


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Placeholder image

Zillow to pay $50M for StreetEasy

Zillow CEO Rich Barton (Credit: iStock)

Zillow and Opendoor aren’t making much on home-flipping

(Credit: iStock)

Zillow tries out a closing-services platform

Zillow's Rich Barton (Credit: iStock)

Zillow iBuying revenue soars — but losses mount

(Illustration by Andrew Colin Beck)

These highly leveraged real estate firms could feel the squeeze in
a downturn

Housing and Urban Development Secretary Ben Carson (Credit: Getty Images, iStock)

HUD wants to jumpstart bank lending on low-income homes

Zillow CEO Rich Barton (Credit: iStock)

Don’t call it flipping: Zillow insists its iBuying is different

arrow_forward_ios