Home shoppers holding out for relief from rising mortgage rates may be in for a long wait.<\/p>\n
Mortgage rates have climbed above 7%, reaching their highest level since May 2024 and it’s putting additional pressure on people looking to buy or refinance a home.<\/p>\n
The Mortgage Bankers Association said mortgage applications fell 1.5% from the previous week as rates increased.<\/p>\n
For current homeowners, refinance applications dropped 3% for the week and are down 62% compared with the same time last year.<\/p>\n
Higher mortgage rates can add hundreds of dollars to a homebuyer\u2019s monthly payment, depending on the size of the loan.<\/p>\n
The increase comes as inflation remains elevated<\/a> and oil prices have surged<\/a> since the start of the Iran war. The Federal Reserve also raised interest rates last week.<\/p>\n While the Federal Reserve does not directly set mortgage rates, its decisions can influence bond markets, including the 10-year Treasury yield, which can affect mortgage rates.<\/p>\n The higher rates are also adding pressure to the housing market. Sales of previously occupied homes have declined for three consecutive months.<\/p>\n For buyers who are still shopping for a home, local real estate agent Tom Finigan said there are ways to potentially reduce costs.<\/p>\n \t\t\t\t\t\t\t\u201cThe real win would be to negotiate either closing costs from your lender or points off the mortgage because while you may save like $5,000 to $10,000 off the front line of the house, if you have a mortgage rate reduction paid for by the seller, you could save hundreds of dollars every month.Tom Finigan, local real estate agent<\/p>\n Finigan said refinancing remains an option for homeowners, although rates would need to fall before refinancing becomes more attractive for many borrowers.<\/p>\n Another trend emerging as mortgage rates rise is increased interest in adjustable-rate mortgages.<\/p>\n Applications for adjustable-rate mortgages now account for nearly 10% of the mortgage market, according to the Mortgage Bankers Association.<\/p>\n","protected":false},"excerpt":{"rendered":"Home shoppers holding out for relief from rising mortgage rates may be in for a long wait. Mortgage…\n","protected":false},"author":2,"featured_media":858290,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,2402,32456],"class_list":["post-858289","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-inflation","tag-mortgage"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/858289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=858289"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/858289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/858290"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=858289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=858289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=858289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}