US mortgage rates rose back above 5 percent, adding pressure on the cooling housing market.
The average for a 30-year loan rose to 5.22 percent from 4.99 percent last week, Freddie Mac said in a statement yesterday.
This is the first increase since July 21.
This year’s rise in the cost of borrowing has begun to calm the pandemic-era frenzy that has gripped US housing markets.
Potential buyers were sidelined as they struggled to find affordable property.
Homes are staying on the market longer these days, leading to a surge in housing stock in July, according to a Realtor.com report.
“The 30-year fixed rate is back up well above 5 percent this week, a reminder that recent volatility remains persistent,” said Sam Khater, Freddie Mac’s chief economist.
“Although interest rates continue to fluctuate, the latest data suggests the housing market is stabilizing as it transitions from the surge in activity during the pandemic to a more balanced market.”
With the market slowing down, builders are now facing a surge in unsold properties.
Confidence among these businesses plummeted in July as sales and buyer traffic slowed, according to a survey by the National Association of Home Builders and Bank Wells Fargo.
Freddie Mac’s mortgage data is collected Monday through Wednesday.
The interest rate on a 30-year loan hit 5.18 percent late Wednesday, according to Mortgage News Daily, which updates the figure more frequently.
“Real estate markets continue to rebalance,” said George Ratiu, manager of economic research at Realtor.com.
“These shifts suggest a welcome change for buyers who are still in the market.”
https://www.independent.ie/business/world/us-mortgage-interest-rates-rise-above-5pc-for-first-time-since-july-41906376.html US mortgage rates rise above 5 percent for the first time since July