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IPFS News Link • Housing

Surge In Mortgage Rates Above 7% Sends Homebuyer Applications To 28 Year Low

• by Tyler Durden

... the recent surge in mortgage may soon spoil the bullish outlook.

According to Bankrate, the average rate on the 30-year fixed mortgage jumped back over 7%, rising to 7.06% (7.10% according to Mortgage News Daily), the highest level since early November.

"Rates continue to move at the suggestion of economic data, and the data hasn't been friendly. This is scary considering this week's data is insignificant compared to several upcoming reports," said Matthew Graham, chief operating officer at Mortgage News Daily.

When rates went over 7% last October - the highest level in more than 20 years - the housing market was being read its last rites, which was also one of the reasons why many expected the Fed to ease back on its tightening. But rates then pulled back in the following months, as inflation appeared to be easing. By mid-January rates were touching 6%, spurring a big jump in buyers signing contracts on existing homes.