Mortgage rates breached the 4% level for the first time in 10 months, challenging prospective buyers who are already facing difficulties in procuring properties. ITB is down 0.24%, while XHB is up 0.13%.
- The average 30-year fixed mortgage rate jumped over 4% for the first time since May 2019, up from 3.22% at the start of the year and the record-low 2.65% in 2021.
- The average rate still remains at historic lows but is significantly above the sub-3% rates recorded for most of 2021.
- Rates have been on an uptrend in anticipation of the Federal Reserve’s widely expected rate hike, which is likely to drive rates even higher.
- Median home prices are 26% higher than the $277,000 recorded the last time the average rate was above 4%.
- The upward movement has continued to hit demand, with mortgage applications down 3.9% in February versus the comparable period in 2021.
- Borrowers with the capacity to refinance dropped to 4 million in February from nearly 18 million in February 2021, based on data from Black Knight Inc.