[The Epoch Times, April 18, 2022](The Epoch Times reporter Li Ou comprehensive report) At the end of last year, most people would not believeMortgageinterest rateIt would go up to 5%, but now it’s a fact. 14th,Freddie Mac(Freddie Mac) announced in the past week that the 30-year fixed rate has averaged 5% for the first time in more than a decade.
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Real estate website Zillow notes that the average 30-year fixedMortgageinterest rateIt exceeded 5% for the first time since late 2018.according toFreddie MacData, in the week of November 14, 2018, the average 30-year fixed interest rate reached 4.94%; in the week of April 7, 2010, it reached 5.21%.
“This week, mortgage rates averaged 5 percent for the first time in more than a decade,” said Freddie Mac chief economist Sam Khater. “As Americans battle historically high inflation, Rising mortgage rates, rising home prices and tight inventory have made the pursuit of homeownership the most expensive thing in a generation.”
With the release of last week’s FOMC minutes, the market confirmedFedWill actively fight inflation. Minutes of the meeting showed that there could be several rate hikes this year. The Fed’s plan to shrink its balance sheet — reducing its holdings of Treasuries and mortgage-backed securities — is more aggressive than some market participants expected. Interest rates were raised in response to a hawkish Federal Reserve stance, while economic data continued to point to a strong labor market and inflationary pressures.
In addition, Fannie Mae (Fannie Mae) said on the 4th and 7th that the Home Buying Sentiment Index (HPSI) fell by 2.1 points to 73.2 in March, and pessimism hit a new high in the survey. As consumers continue to express general pessimism about the trajectory of mortgage rates and home buying conditions.Overall, four of the index’s six components fell month-over-month, including asking consumers whether they expect mortgage rates to rise and whether they think it is now.buy a housegood time.
69% of respondents said they expect mortgage rates to continue to rise. “buy a houseThe “good time to buy” hit a new survey low, with 73% of respondents saying it’s a bad time to buy a home. The overall index fell 8.5 points year-over-year.
“High home prices, rising interest rates and macroeconomic uncertainty are key concerns for consumers,” said Mark Palim, vice president and deputy chief economist at Fannie Mae. “Only 24 percent of consumption respondents believe now is a good time to buy a home, and almost all demographic groups surveyed expressed similar levels of pessimism.”
Parrim also said a high percentage of consumers in the survey expect their financial situation to deteriorate over the next year, especially among current homeowners. These concerns, combined with rising interest rates, could reduce mortgage demand for move-up buyers — and fewer move-up buyers means fewer entry-level homes available, increasing the challenge for first-time buyers .
“If consumer pessimism about home buying persists and recent interest rates continue to rise, then we expect the housing market to cool more than previously forecast,” Parrim said. #
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This article was published in the April 16 issue of Real Estate in San Francisco
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