Mortgage Demand Weakens as Rates Jump #investment #realestate #homeownership

Source:  CNBC

Mortgage rates just saw their biggest jump since the presidential election, and that took a heavy toll on demand for home loans.

Total mortgage application volume fell 7.4 percent last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted report.  Volume was 36 percent lower than a year ago.

Based on that, the U.S. 10-year Treasury yield has increased 18 basis points over the past month, and mortgage rates are back to their highest level since May.  Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $424,100 or less increased to 4.22 percent from 4.20 percent, with points increasing to 0.40 from 0.31, including the origination fee, for 80 percent loan-to-value-ratio loans.

Click the link for further reading:
http://www.cnbc.com/2017/07/12/higher-interest-rates-send-mortgage-applications-tanking.html

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