Source: Reuters
US home loan interest rates climbed to a three-year low in the past week, with homebuyers rushing to make acquisitions before rates jump even higher. XHB is up 1.43%, while ITB is up 1.58%.
- The average contract rate for the 30-year fixed-rate mortgage climbed 5.13% in the week ending April 8, up from 4.90% the previous week.
- This is 1.5 percentage points higher than the levels seen at the start of 2022, with the Federal Reserve anticipated to tighten policy moving forward.
- The Purchase Composite Index increased by 1.4% to 261.8, while the refinance index slipped 4.9%.
- Mortgage originations declined 35.5% so far this year to $2.58 trillion, but purchase originations are still expected to increase 4% to $1.72 trillion.
- The expected tightening of policy rates has driven Treasury yields higher, with the 10-year note reaching the highest level since 2018.
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