Weekly mortgage demand drops as interest rates rise again from current mortgage rates tfcu Watch Video

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Home prices have increased by 47% since early 2020, reaching a median price roughly five times the median household income last year, according to a report by the Harvard Joint Center for Housing Studies. This rise, coupled with high mortgage rates, has made homeownership increasingly unattainable for many, affecting nearly half of metro areas where buyers need over $100,000 to afford a median-priced home. The situation has also worsened racial disparities in homeownership, with only a small percentage of Black and Hispanic renters able to afford median home prices. The rental market has seen rising prices, driven by high demand and a significant housing shortage.
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New US Home Construction , Sinks to Slowest Pace in 4 Years.<br/>Government data released on June 20 indicates that new home construction in America dropped in May to the slowest pace since June 2020, Yahoo Finance reports. .<br/>Housing starts dropped 5.5%, <br/>and building permits dipped 3.8%.<br/>Home completions also fell to the lowest amount since September 2022.<br/>High interest rates, set by the Fed to help tame inflation, have resulted in high mortgage rates.<br/>But recent data has suggested that inflation has started to cool, which may give the Fed the confidence it needs to lower rates.<br/>The weakest U.S. housing starts <br/>since the pandemic-led shutdowns <br/>are fairly convincing evidence of <br/>restrictive monetary policy. , Sal Guatieri, senior economist at BMO Capital Markets, via note.<br/>While a growing population and <br/>workforce are providing some support, <br/>US home builders won’t become <br/>busier until borrowing costs fall, Sal Guatieri, senior economist at BMO Capital Markets, via note.<br/>Meanwhile, other data released on June 20 showed that first-time applications for unemployment benefits dropped last week.<br/>However, continuing claims rose <br/>for a seventh consecutive week
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Homebuyers , Take Advantage of , Easing Mortgage Rates.<br/>'Newsweek' reports that the number of mortgage <br/>applications increased for the week ending June 21 <br/>as the cost of home loans has begun to ease. .<br/>According to the Mortgage Bankers Association (MBA) <br/>Market Composite Index, there was a nearly 1% increase <br/>in mortgage applications from the week before.<br/>MBA data shows that it is the third <br/>consecutive week of an increase <br/>in application numbers. .<br/>At the same time, refinancing <br/>activity was up 28% compared <br/>to the same time in 2023.<br/>In recent weeks, mortgage rates have trended <br/>below 7%, helping to slightly reduce the cost of <br/>monthly payments for potential homebuyers.<br/>Mortgage rates were mostly <br/>lower last week, with the 30-year <br/>fixed rate declining slightly to <br/>6.93 percent, the lowest level <br/>in more than three months, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.<br/>According to Joel Kan, MBA's deputy chief economist,<br/>the drop in rates has failed to convince more <br/>homeowners to change the terms of their existing loans.<br/>According to Redfin data, almost 90% of U.S. <br/>homeowners have mortgages below 6%, <br/>cheaper than the current market.<br/>Purchase applications did see <br/>a small increase after adjusting <br/>for the Juneteenth holiday, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.<br/>Government purchase loans, <br/>primarily FHA and VA, saw <br/>gains of more than 2 percent <br/>over the previous week, <br/>as homebuyers in those segments <br/>sought to take advantage <br/>of the recent rate relief, Joel Kan, MBA's deputy chief economist, via 'Newsweek'
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