Categorized | Finance and Mortgage

U.S. Mortgage Rates Finally Rise From Record Lows

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For the first time in nearly four weeks, fixed-rate mortgage loans have increased above their previous record lows. Both 15-year and 30-year fixed mortgage loan rates increased roughly 0.7 percent.

Despite the low rates, the number of loan applications nationwide hit a near record low of its own. In fact, it has been nearly fourteen years since applications had hit such depressed numbers. Although mortgage rates are at unprecedented low levels, it is believed that many potential homeowners are opting not to buy until the overall job market improves. In fact, the dreadfully high unemployment rate has been cited as being one of the main reasons as to why people are not looking to buy a home at this time.

The stock market’s recent volatility certainly isn’t helping matters either. It is believed that the buying confidence of potential home buyers is incredibly low, as there is a tremendous amount of uncertainty in the current market.

As the demand for homes and residential real estate property continues to dwindle, housing prices are taking a hit as well. Home prices have dropped another six percent across the country, which marks the biggest drop since 2009.

The numbers certainly are not good news for lenders, and real estate brokers, as the residential real estate market has been struggling immensely to recover from the devastating real estate crash. With this most recent rise in U.S. mortgage loan rates, lenders are hoping to compensate for the dwindling number of applications. As to whether an increased rate is best for the depressed real estate market, the answer is yet to be seen.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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