Mortgage Rate Surpasses 3%

While mortgage rates are certainly not high, we can no longer safely call them low. The average rate for a 30-year fixed conforming loan is considered low when it’s below 3%. They’ve been slowly increasing. In the first half of August, it barely qualified at 2.99%. Now, the number sits at 3.06%.

As a result of increasing mortgage rates, demand for refinances has also decreased, dropping by 5% as soon as the rate passed 3%. Applications for purchase loans are less sensitive than refinance applications, and dropped only 1%. Despite the decreases in number of mortgage applications, the total dollar volume is still high, as a result of high prices fueled by heavy competition.

Photo by Mathieu Stern on Unsplash

More: https://www.cnbc.com/2021/08/18/mortgage-rates-hit-highest-level-in-a-month-and-weekly-demand-drops.html

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