Higher mortgage rates have caused applications to plummet.The milestone came as bond yields soar to levels not seen since 2007. Mortgage rates follow loosely the yield on thethis week and last week, as investors digest more reads on the economy. On Wednesday it was housing starts, which rose in September, though not as much as expected, according to the U.S. Census.
While they had used the financing tool very sparingly in the past, it is now the top incentive among builders, according to industry sources. "Although our mortgage company has been offering slightly below market rate loans most of this cycle , the full point buydown for the 30-year life of the loan we've been referring to recently as a builder incentive is not something we had done in previous cycles, at least not on the broad, majority basis we are doing so today.
The average rate on the 30-year fixed was as low as 3% just two years ago. To put it in perspective, a buyer purchasing a $400,000 home with a 20% down payment would have a monthly payment today of nearly $1,000 more than it would have been two years ago.
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »