“For Sale” sign outside a home in Crockett, California, on Tuesday, May 31, 2022.
David Paul Morris | Bloomberg | beautiful pictures
Mortgage rates have risen sharply this week, after falling for the past three weeks.
Follow Mortgage News Daily. Volatility in global markets on Monday sent bond yields higher. Mortgage rates loosely follow 10-year US Treasury yields.
The average rate on a popular 30-year fixed loan ended last week at 5.25%. The average rate on a popular 30-year fixed loan ended last week at 5.25%. The most recent high, three weeks ago, was 5.67%, but the ratio has fallen due to a sell-off in the stock market and falling bond yields.
Tuesday’s spike could be attributed to the release of data from the US Manufacturing Index.
Matthew Graham, COO of Mortgage News Daily wrote on this website: “The manufacturing index pick up shows that the economy is not slowing down quickly.
Mortgage rates, much higher than they were at the start of the year, have plunged the housing market into a fiery red in the past few weeks. Realtors are reporting lower salesand Mortgage needs to buy a house is also decreasing.
While both home sales and mortgage demand fell, House prices are still going up. Prices typically slow sales by about six months, but a rare dynamic in today’s market – strong demand and very low supply – is still keeping prices high.
“It is inevitable that home price growth will slow in the coming months,” Lawrence Yun, chief economist for the National Association of Realtors, told CNBC’s Power noon Monday.
