Mortgage Rates

Mortgage Rates Hit 7.23%, Highest Since 2001

Mortgage rates pushed to a fresh two-decade high this week, making it tougher for the housing market to emerge from its stark slowdown. The average 30-year fixed mortgage came with an interest rate of 7.23%, according to Freddie Mac, with some borrowers paying even loftier rates. The new high is a turnabout from two years earlier, when borrowing rates were below 3%, near record lows. Millions of people were rushing to buy homes and refinance. Now, financing a typical home purchase costs hundreds of thousands of dollars more in interest, Ben Eisen and Gina Heeb report (see some of the attached graphs below).

Much of the housing market has slowed with higher financing costs. Applications for purchase mortgages dropped to their lowest levels since 1995, the Mortgage Bankers Association said this week.

While I don’t enjoy seeing 22-yr high mortgage rates, I would by lying if I didn’t think that renting a unit in MF or B2R is more affordable that purchasing a house. Note, I said more affordable, not necessarily ideal for some. It does further boost markets with high supply/demand imbalances like the Texas Triangle and further supports our continued increase in lease trade-out numbers in DFW and Houston MSAs.

Subscribe to our newsletter at www.revisionmasters.us