More potential homebuyers are backing out of the housing market, as interest rates continue to climb. Mortgage applications fell 13.2 percent from two weeks ago, according to the Mortgage Bankers Association (MBA), while the average 30-year fixed rate mortgage jumped to 6.58 percent from 6.34 percent from two weeks ago.
“The end of the year is typically a slower time for the housing market, and with mortgage rates still well above 6 percent and the threat of a recession looming, mortgage applications continued to decline over the past two weeks to the lowest level since 1996,” said Joel Kan, vice president and deputy chief economist at the MBA, in a press release.
Refinancing is also plummeting from its 2021 highs. The association's holiday adjusted index tracking the activity decreased 16.3 percent from the two weeks ago and 87 percent from the same week a year ago, when mortgage rates were half what they are now.
"Mortgage rates are lower than October 2022 highs, but would have to decline substantially to generate additional refinance activity," Kan said.
The upside of the pullback in mortgage applications is that price growth is finally beginning to slow. The most recent S&P CoreLogic Case-Shiller home price index numbers showed a 9.2 percent annual gain in October, down from 10.7 percent in the previous month, and a 0.5 percent month-over-month decrease.
“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices," said Craig J. Lazzara, managing director at S&P DJI in a press release. "Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken."
On National Taco Day, Cheddar News breaks down which eateries are currently offering big deals to mark the day.
Finding a job and securing an interview is a stressful process. Cheddar News explains how artificial intelligence can help you prepare for that interview.
Jurassic Park and Lego are partnering for a movie.
Visual effects workers at Disney voted to unionize.
Workers at Kaiser Permanente walked off the job, representing the largest healthcare strike in history. Michelle Castillo broke down what could happen next and what it could mean for patients.
Wednesday marks World Financial Planning Day. Rebecca Walser, president and founder of Walser Wealth Management, joined Cheddar News to discuss why financial planning is important, how it can be done and why it's best to start early.
Traveling can be expensive and if a situation arises, costs can add up. Nick Ewen, senior editor at The Points Guy, joined Cheddar News to explain what travel insurance can cover and when you should purchase it.
A prosecutor opened a criminal fraud trial Wednesday by telling jurors that FTX founder Sam Bankman-Fried was on top of the world a year ago, hobnobbing with people like football star Tom Brady and ex-President Bill Clinton, before his historic fraud was exposed, leaving customers and investors without at least $10 billion they thought was secure.
Staying on top of your personal spending shouldn't be as complicated as you think. Lazetta Braxton, a certified financial planner, joined Cheddar News to provide tips on how to track that spending, such as grouping expenses into different categories.
Uber is adding a new task to its list of services: mailing consumers' return packages.
