Thirty-year fixed-rate mortgages surpassed 6% for the first time since November 2008, double what they were a year ago.
At 6.02%, the rate on a 30-year fixed-rate mortgage (FRM) is up more than twice from 2.86% at this time last year, while the average 15-year FRM is at 5.89%, up nearly three times from 2.12%. The fresh data comes days after Goldman Sachs' chief economist warned the housing market would remain poor.
Hatzius told Yahoo Finance “Housing I think still has a significant amount of weakness ahead,” “The indicators there have continued to come in on the weaker side. So while the consumer might be doing a little bit better because of lower inflation, I think housing is going to be pretty soft.”
“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” according to Freddie Mac's Chief Economist Sam Khater. “Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large.”
It's not about the numerical rate.
It's about the new monthly payments.
These mortgage rates coupled with frothy home prices put new payments in the upper bounds of history. pic.twitter.com/ww18vCVibN
— Lance Lambert (@NewsLambert) September 14, 2022
According to the U.S. Census Bureau, new single-family home sales in July fell 29.6% year-over-year and 12.6% from June. National Association of Realtors: Existing-home sales declined 5.9% from June and 20.2% year-over-year (NAR).
Lawrence Yun, the NAR's top economist, said mortgage rates dropping to 5% would "stabilize" sales. The median existing-home price grew 10.7% to $403,000.
“We’re witnessing a housing recession in terms of declining home sales and home building,” Yun remarked, according to the NAR report. “However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
Freddie Mac pointed DCNF to the above press announcement.
The preceding is a summary of an article that originally appeared on WND.