The average rate on the 30-year US mortgage was recorded at 4.72%, an increase from 4.67% last week. SPY is down -0.44%, DXY is up -0.02%.
- The mortgage rates have now risen for the fifth straight week, with the latest rate the highest since December 2018.
- The rise in mortgage costs has been reflected through falling loan demand, while the refinancing rate has been going lower. Applications to acquire homes plunged 20% last week from the prior year.
- At the rate of 4.72%, the mortgage rate is seen going towards 5%, which was last seen in February 2011. Projected faster rate hikes by the Fed are expected to worsen the borrowing costs further.
- Despite still remaining below 5%, borrowers are reporting as high as a 5.2% rate for a 30-year conventional mortgage, which is pricing some from the market.