Rising mortgage rates take a pause
It may not seem like much, but mortgage rates last week stopped their upward surge of the previous six weeks. According to Freddie Mac, the average 30-year fixed-rate mortgage was at 6.66% in the week ending October 5th. That was down all of 0.04% from the week before.
This was welcome news during the same week that saw a jobs report that suggested more rate hikes from the Federal Reserve of their federal funds rate. But uncertainty in the economy and the high price of homes currently are spooking some lenders and helping to slow down the speed of mortgage rate increases.
Homebuyer sentiment falls to its lowest in over a decade.
Driven by widespread concerns of housing affordability caused by high home prices and rising mortgage rates, Fannie Mae reported that homebuyer sentiment has fallen to its lowest level since December of 2011. This is the seventh month in a row of declines. This phone-interview survey also found concerns and uncertainty of the nation’s economic outlook as another reason that potential homebuyers are avoiding purchasing a home right now.
This suggests homebuyers are sticking to the sidelines, waiting for rates or home prices to fall before jumping back in.
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