WATCH:
Mortgage rates are now higher after the Federal Reserve signaled it would continue its aggressive action to cool inflation. That, and rising uncertainty in the overall housing market, caused mortgage application volume to drop 3.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
CNBC reports that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 7.08% from 6.52%, with points rising to 1.15 from 0.71 (including the origination fee) for loans with a 20% down payment. That is the highest level since mid-2008.
“After a brief pause in July, mortgage rates have increased more than a percentage point over the past six weeks,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Ongoing uncertainty about the impact of the Fed’s reduction of its MBS and Treasury holdings is adding to the volatility in mortgage rates.”
Mortgage applications to purchase a home decreased 0.4% for the week and were 29% lower than the same week one year ago.
No biggie. This will have ZERO effect on home prices in Midwood/Flatbush. Prices only continue to go up and up. The people buying these homes don’t need or waste time with mortgages. It’s all misuman. Mortgages are for the loh yutzlachs. This place has turned into Sedom. Good, let it be so. The arrogant will have their downfall one day. That is how the world works.
The Federal Reserve which isn’t Federal at all; it’s a private corporation owned by the elite, has been abolished. NESARA which will be implemented one of these days will include mortgage debt forgiveness.