Español
The slowdown in the demand for mortgages and the rise in interest rates.
The mortgage market faces significant challenges due to high interest rates, which remain firm and directly affect the demand for home loans.
Slowdown in Mortgage Demand
The total volume of mortgage applications has decreased by 1.8% last week compared to the previous week, raising concerns among potential buyers.
Average interest rates and their effect on buyers
Average interest rates for 30-year mortgages with conforming loan balances remain at 6.87%, representing a barrier for buyers, especially those with low down payments.
The least accessible real estate market
Steadily rising home prices are leading to a decline in buying activity, with FHA applications dropping 10% due to a lack of affordability for low-income buyers.
Refinancing and search for liquidity
Low refinancing rates are unattractive to most borrowers, while those in need of cash opt for second home equity loans instead of refinancing.
Rising Mortgage Rates
Mortgage rates have crossed 7% and are at 7.04% this week, showing the influence of the Federal Reserve's decisions on the market.
Impact of Federal Reserve policies
Federal funds rates do not directly dictate mortgage rates, leaving room for uncertainty and the possibility of fluctuations based on Jerome Powell's statements.
Tip: always stay informed and updated.
In an ever-changing mortgage market, information and preparation are key to making informed decisions and meeting current and future housing market challenges.
