{"id":1207,"date":"2022-09-15T09:13:54","date_gmt":"2022-09-15T09:13:54","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/09\/15\/mortgage-rates-hit-6-for-the-first-time-since-2008-while-applications-fall-to-lowest-level-since-1999\/"},"modified":"2022-09-15T09:13:54","modified_gmt":"2022-09-15T09:13:54","slug":"mortgage-rates-hit-6-for-the-first-time-since-2008-while-applications-fall-to-lowest-level-since-1999","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/09\/15\/mortgage-rates-hit-6-for-the-first-time-since-2008-while-applications-fall-to-lowest-level-since-1999\/","title":{"rendered":"Mortgage Rates Hit 6% for the First Time Since 2008, While Applications Fall to Lowest Level Since 1999"},"content":{"rendered":"

<\/a><\/p>\n

JUSTIN SULLIVAN \/ GETTY IMAGES<\/p>\n

<\/p>\n

The numbers:<\/strong> A surge in mortgage rates to 6% is giving home shoppers chills, pushing them to wait to refinance or buy a home.<\/p>\n

With rates doubling from where they were a year ago, demand from buyers continues to weaken, as reflected in the Market Composite Index, a measure of mortgage application volume.<\/p>\n

The index is now at its lowest level since December 1999, the Mortgage Bankers Association (MBA) said on Wednesday.<\/p>\n

The market index fell 1.2% to 255 in the week ending September 9. A year ago, the index stood at 707.9.<\/p>\n

The big picture:<\/strong>\u00a0Rates hitting 6% is a significant milestone, albeit a negative one, for buyers. Mortgage rates are now at the highest level since November 2008.<\/p>\n

Higher rates have pushed buyers to rethink refinancing and contributed to other prospective buyers\u2019 staying on the sidelines, the MBA said.<\/p>\n

Yet there\u2019s still a silver lining in the data. Government loans, which many first-time buyers tap on, bucked the trend and in fact, increased week over week, the MBA said.<\/p>\n

These were loans from the Veterans Administration and the U.S. Department of Agriculture.<\/p>\n

But there\u2019s likely to be more pain in the sector. With inflation\u00a0continuing to run hot<\/a>, all eyes turn to the Federal Reserve, which will determine whether it\u2019ll be more aggressive in\u00a0hiking interest rates<\/a>.<\/p>\n

Higher rates are likely to cool demand even further. Which means that the downturn in housing continues.<\/p>\n

Key details:<\/strong> The Refinance Index dropped by 4.2% and was down 83% compared to a year ago.<\/p>\n

The Purchase Index\u2014which measures mortgage applications for the purchase of a home\u2014rose by 0.2% from the previous week.<\/p>\n

The average contract rate for the 30-year mortgage for homes sold for $647,200 or less was 6.01% for the week ending September 9. That\u2019s up from 5.94%% the week before, the MBA said.<\/p>\n

For homes sold for over $647,200, the average rate for the 30-year was 5.56%. The 15-year rose to 5.3%.<\/p>\n

The rate for adjustable-rate mortgages, which comprise 9.1% of total applications, rose to 4.83%.<\/p>\n

Market reaction:<\/strong> The yield on the 10-year Treasury note\u00a0rose above 3.4% in early morning trading.<\/p>\n

___<\/p>\n

Watch: As Summer Comes to an Unofficial Close, Where Does the Housing Market Stand?<\/strong><\/p>\n

\u00a0<\/p>\n

The post Mortgage Rates Hit 6% for the First Time Since 2008, While Applications Fall to Lowest Level Since 1999<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

JUSTIN SULLIVAN \/ GETTY IMAGES The numbers: A surge in mortgage rates to 6% is giving home shoppers chills, pushing them to wait to refinance or buy a home. With rates doubling from where they were a year ago, demand from buyers continues to weaken, as reflected in the Market Composite Index, a measure of…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":1208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=1207"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/1208"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=1207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=1207"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=1207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}