US mortgage rates rise to 4.9%

© Reuters. FILE PHOTO: A home under construction stands behind a “sold” sign during a new development in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson/File Photo

(Reuters) – The average interest rate on America’s most popular home loan continued to rise last week and stayed at a more than three-year high, a survey showed on Wednesday, as the Federal Reserve reported signal that they will strongly tighten monetary policy to control inflation.

The Mortgage Bankers Association (MBA) said the average contract rate on a 30-year fixed-rate mortgage rose to 4.9% for the week ended April 1 from 4.8 % a week earlier, keeping mortgage rates at their highest level since December 2018.

Mortgage rates are now up nearly 1.6 percentage points since the start of the year, the fastest increase in home loan costs since 1994.

Home prices have risen about 35% since the outbreak of the COVID-19 pandemic, as the US central bank helped fuel the red-hot housing market by slashing interest rates to near zero, according to the Zillow Home Value Index. .

Last month, the Fed raised its benchmark overnight lending rate last month for the first time in more than three years and indicated rates will rise faster than previous financial market expectations, dampening demand. from home buyers.

Investors expect the Fed to raise the federal funds rate to 2.5%-2.75% later this year, up from the current target range of 0.25% to 0.5%.

The MBA said its Market Composite Index, a measure of mortgage applications, fell 6.3% on a seasonally adjusted basis to 398.5, its lowest level since March 2019.

The refinancing index also fell 9.9% to its lowest level since March 2019, the MBA said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor is it accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so prices may be inaccurate and subject to change. differs from the actual market price, which means that the price is indicative only and is not suitable for trading purposes. Therefore, Fusion Media does not accept any responsibility for any trading losses you may incur as a result of using this data.

Fusion Media or anyone associated with Fusion Media shall not bear any liability for loss or damage resulting from reliance on information including data, quotes, charts and buy/sell signals contained in this site. Please be fully informed of the risks and costs associated with trading in financial markets, which are among the riskiest forms of investment possible.

Source link


News of max: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button