US Mortgage Rates Climb to Three-Month High Amid Low Supply

Source: Bloomberg

American mortgage rates hit three-month highs on Thursday amid a supply shortage as more Americans look for bigger properties. DXY is down 0.04%, while Gold is up 1.81%.

• The average for the 30-year loan surged 3.01%, versus the 2.88% in the previous week. This is the highest since June 24.
• Prices have surged higher as borrowing costs dipped to historic lows, along with the drop in available home supplies as buyers look for larger properties.
• Freddie Mac Chief Economist Sam Khater believes that the continued uptrend in rates could help moderate surging prices.
• Mortgage rates are predicted to continue their uptrend, which will likely impact home prices, causing them to post a slight moderation.
• A number of potential buyers have found it difficult to find affordable homes or have lost in bidding wars as cash offers have continued to dominate.
• The 39-year average plunged to a record-low 2.65% at the beginning of the year and has climbed since to track the yields for 10-year Treasuries, which rose above 1.5% this week for the first time since June.