The recent spike in national mortgage rates stirred concerns among homebuyers and economists alike. With the 30-year fixed-rate mortgage (FRM) climbing to 6.88% on April 11, questions arise about the trajectory of the housing market.
Chart Source: Freddie Mac
Additionally, other key indicators such as the 15-year fixed mortgage rate, which rose to 6.16%, signaled a broader trend of rate hikes.
Also Read: Are You A Housing Market Lock-In? High Mortgage Rates Result In ‘People Not Living In Homes They Would Prefer’
Stubborn Inflation And The Fed To Blame
Per Freddie Mac, mortgage rates have gradually increased through the year, due to persistent inflation and the reassessment of the Federal Reserve’s monetary policy trajectory.
The latest inflation figures from March indicate minimal change, but the financial market’s response presents a contrasting economic outlook. The March estimate of 3.5% annual inflation growth fell within the range of 3.1% to 3.7%, while the Dow Jones Industrial ...Full story available on Benzinga.com
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