Rising mortgage rates are beginning to dampen home buyer demand.
On Thursday, Freddie Mac reported 3.18% as the average on a 30-year fixed rate mortgage, up slightly from last week and still at the highest that rates have been since last summer.
“Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market,” Sam Khater, Freddie Mac’s Chief Economist, said in a statement. “In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today. We even see that purchase demand is diminished today as compared to late May and early June of 2020, when mortgage rates were the same level."
The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.
This article originally published at https://dc.urbanturf.com/articles/blog/318-rising-mortgage-rates-affecting-homebuyer-demand/18075.
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