"Higher mortgage rates continue to shut down refinance activity, as the pool of borrowers who can benefit from a refinance further shrinks," said Joel Kan, an MBA economist.
Mortgage applications to purchase a home fell 2% for the week but were 39% higher than a year ago. That large and seemingly strong annual comparison, however, is due to the fact that the entire housing market basically stalled when the pandemic hit a year ago. It then came roaring back just a few months later. The weekly drop is likely more indicative of what's happening now with homebuyers.
"Many prospective homebuyers this spring are feeling the effects of higher rates and rapidly accelerating home prices," said Kan. "Record-low inventory is pushing home-price growth at double the rate from a year ago, and even above the 10% growth rates seen in 2005. The housing market is in desperate need of more inventory to cool price growth and preserve affordability."
Mortgage rates started this week on the upswing yet again. Some believe higher rates will help to cool the growth in home prices because potential buyers will simply be sidelined. Demand, however, does not appear to be abating, and the inventory situation is not easing at all, even with the onset of the popular spring season.
wait, does that mean poor people got better rates on home loans so they aren't kept down by high made up rates i mean high rates based on a stable free market?
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