TechBizWebTechBizWeb

    Subscribe to Updates

    Get the latest news about Technology and Business from all around the web..

    What's Hot

    Ripple Labs Inc Floats CBDC Innovate Challenge

    June 29, 2022

    Trump-endorsed candidate clinches Republican nomination for Illinois governor

    June 29, 2022

    Pinterest has a new CEO, who has one job: to build the internet’s shopping mall

    June 29, 2022
    Facebook Twitter Instagram
    • About Us
    • Privacy Policy
    • Guest Post
    • Terms
    • Contact
    Facebook Twitter Instagram
    TechBizWebTechBizWeb
    Subscribe
    • Home
    • Technology

      Pinterest has a new CEO, who has one job: to build the internet’s shopping mall

      June 29, 2022

      Montblanc Summit 3 will be the first Wear OS 3 smartwatch for iOS

      June 29, 2022

      Gmail’s new look is about to appear for more people, even if they didn’t ask for it

      June 29, 2022

      Are Hyper’s stackable USB-C chargers melting?

      June 28, 2022

      Belkin’s MagSafe charging stand can now fast charge the Apple Watch Series 7

      June 28, 2022
    • Business
    • Cyber Security

      Hybrid work transition reveals low enterprise cybersecurity confidence

      June 28, 2022

      Ransomware in Q1 2022 doubled total 2021 volume

      June 28, 2022

      Lithuania hit by DDoS cyberattack

      June 28, 2022

      2 out of 3 European citizens welcome digital ID wallet

      June 28, 2022

      87% of executives have no cybersecurity tools on personal devices

      June 27, 2022
    • Blockchain
    • Vulnerabilities
    • Social Engineering
    • Malware
    • Cyber Security Alerts
    TechBizWebTechBizWeb
    Home»Business»US home mortgage rates jump by the most since 1987
    Business

    US home mortgage rates jump by the most since 1987

    June 16, 2022Updated:June 16, 2022No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp
    Share
    Facebook Twitter LinkedIn Pinterest Email

    US mortgage rates have surged by the most in 35 years as inflation soars and interest rates rise, threatening to leave many first-time homebuyers on the sidelines.

    The average interest rate on a 30-year fixed rate mortgage jumped by more than half a percentage point to 5.78 per cent, the highest level since November 2008, according to mortgage provider Freddie Mac.

    The weekly increase was the sharpest since 1987. The rate was 3.2 per cent at the start of the year, while a year ago, before the Federal Reserve embarked on an aggressive campaign to raise interest rates, the 30-year fixed rate mortgage averaged 2.93 per cent.

    The rapid acceleration has threatened to cool a strong housing market, as Americans — many working from home during the coronavirus pandemic — took advantage of lower mortgage rates to buy housing, in the process driving prices to record highs.

    But the recent rise in mortgage rates has threatened affordability for new homebuyers, slowing housing demand.

    “The average homebuyer today now faces higher mortgage repayments as a share of their income than last seen at the peak of the mid-2000s boom,” said Matthew Pointon, senior property economist at Capital Economics. “With cautious lenders not set to loosen mortgage lending standards, that will shut many potential buyers out of the market. Indeed, the first-time buyer share has recently dropped to 13-year lows.”

    Homebuyers stunned by the rapid climb in mortgage rates can look to the Federal Reserve’s efforts to tame US inflation that reached a fresh 40-year high last month, as well as rising inflation expectations, which suggest Americans are becoming more concerned about the outlook and their finances. The Fed on Wednesday raised its benchmark rate by 0.75 percentage points, the largest increase since 1994.

    “These higher rates are the result of a shift in expectations about inflation and the course of monetary policy,” said Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”

    Moderation is already starting to show up in the data: the rate of US new home construction fell in May to the slowest pace since April 2021.

    US housing starts fell 14.4 per cent month on month to an annualised pace of 1.5mn, according to the commerce department. Building permits, considered a leading indicator of the housing market, fell 7 per cent from the previous month to an annualised pace of 1.69mn.

    Sentiment among homebuilders declined for the sixth consecutive month in June, as inflation and higher mortgage rates weakened demand for new homes.

    Sellers have also started to take note, with Redfin on Thursday reporting that the number of for sale homes with price drops reached a record 22. 4 per cent in the four weeks that ended June 12.

    The recent jump in mortgage rates was calculated before the Federal Reserve’s rate-setting meeting this week. Fed officials have signalled the policy rate could rise well above 3 per cent by year end.

    “Mortgage rates tend to get priced off the 10-year [Treasury note] yield for fixed-rate mortgages,” said Joshua Shapiro, chief US economist at MFR. “Mortgage rates will probably rise further, but I think we’ve seen the bulk of the increase.”

    Still, high interest rates will slow economic growth, which will impact consumer spending, leading to a decrease in home sales. Nancy Vanden Houten, lead economist at Oxford Economics, said there is a chance that long-term interest rates could steady.

    “If the Fed’s aggressive stance leads to a slowing in economic growth and inflation, long-term interest rates may stabilise,” said Vanden Houten. “Or start to decline even as the Fed continues to raise short-term rates.”

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Trump-endorsed candidate clinches Republican nomination for Illinois governor

    June 29, 2022 Business

    China’s Marxism majors prosper amid labour market woes

    June 29, 2022 Business

    Disney board renews chief executive Bob Chapek’s contract for 3 years

    June 29, 2022 Business

    US FDA panel recommends redesign of Covid vaccine to target Omicron variant

    June 28, 2022 Business

    Finland and Sweden poised to join Nato after Turkey drops veto

    June 28, 2022 Business

    Ghislaine Maxwell sentenced to 20 years for aiding Jeffrey Epstein’s abuse

    June 28, 2022 Business
    Editors Picks

    Trump-endorsed candidate clinches Republican nomination for Illinois governor

    June 29, 2022

    Pinterest has a new CEO, who has one job: to build the internet’s shopping mall

    June 29, 2022

    China’s Marxism majors prosper amid labour market woes

    June 29, 2022

    Montblanc Summit 3 will be the first Wear OS 3 smartwatch for iOS

    June 29, 2022
    Trending Now

    Belkin’s MagSafe charging stand can now fast charge the Apple Watch Series 7

    By techbizweb

    Ghislaine Maxwell sentenced to 20 years for aiding Jeffrey Epstein’s abuse

    By techbizweb

    Android 13’s Easter egg is a delightful kaleidoscope of emoji

    By techbizweb

    https://www.nationalsportsacademy.com

    slot gacor hari ini

    http://www.inadesfo.org/

    http://www.eueomgbissau.org/

    http://www.congo-mai-mai.net/

    http://www.angelesdelafrontera.org/

    http://fifaworldcup2018schedule.com/

    http://tony4gtrmcr.co.uk/

    http://www.standrewsagreement.org/

    http://www.bob-russell.co.uk/

    http://davidmulholland.co.uk/

    http://railwayhotelenniskillen.com/

    http://www.fantasysportstrades.com/

    http://www.rainleaf-flooring.com

    http://mothersagainstguns.org/

    http://ma-coc.org/

    slot online

    http://www.paradoxmag.com/situs-judi-slot-online-gampang-menang-2021/

    http://www.paradoxmag.com/situs-judi-slot-online-terbaru-2021/

    http://slot-terbaru.net/

    Slot Gacor

    Slot Online

    Situs Slot Gacor

    http://www.appdexterity.com/

    https://cars4kids-deutschland.de/

    https://www.stretchingculture.com/

    https://www.b-123-hp.com/slot-gacor/

    https://denzstaffing.nl/

    https://ezbbqcooking.com/slot-gacor/

    https://www.mbahelp24.com/slot-gacor

    https://minhtanstore.com/slot-jackpot-terbesar/

    https://njbpusupplierdiversity.com/slot-gacor-gampang-menang/

    https://www.floridaspecialtycropfoundation.org/slot-gampang-menang/

    https://childrenscornerpreschool.org/slot-gacor-gampang-menang/

    https://cryptoquoter.com/slot-online-terbaik/

    https://alorkantho24.com/slot-gacor/

    https://ellas.xyz/slot-gacor/

    https://it.dougamatome.xyz/slot-online/

    https://www.daltercume.com/slot-gacor/

    https://josi-ana.dougamatome.xyz/slot88/

    https://josi-ana.dougamatome.xyz/slot-gacor/

    https://fastobserver.com/slot-jackpot-terbesar/

    https://www.planetexperts.com/slot-gacor/

    https://bfsolution.group/slot-bet-kecil/

    https://rustleva.co/slot/

    https://bfsolution.group/slot-bet-kecil/

    https://www.hotelcalimareal.com/togel-online/

    https://anime-game.dougamatome.xyz/slot-gacor-gampang-menang/

    https://anime-game.dougamatome.xyz/togel-online/

    https://bourbonbarrelfoods.com/slot/

    http://suneo39.wp.xdomain.jp/slot/

    https://techbizweb.com/slot-gacor/

    https://www.generalcatalyst.com/18-daftar-slot-gacor-terbaik-gampang-menang-jackpot-hari-ini/

    https://www.hotelcalimareal.com/slot-online/

    https://www.blockgates.io/slot-gacor/

    https://l12.com.br/slot-gacor/

    slot paling gacor

    https://www.donalds-hobby.com/slot-online/

    https://thecryptodirt.com/slot-gacor-hari-ini/

    http://iseta.edu.ar/aulavirtual/app/upload/users/1/1205/my_files/sbobet.html

    http://escuelavirtual.mincit.gov.co/app/upload/users/1/194/my_files/slot.html

    https://www.dev.medecinesfax.org/courses/JUDICASINO/document/slot.html

    http://www.e-archivos.org/cursos/courses/JUDICASINO/document/slot-gacor.html

    http://iesma.com.br/ead/main/upload/users/4/447/my_files/slot.html

    https://www.fundacoop.org/chamilo/app/upload/users/1/1185/my_files/slot.html

    https://fata-aatf.org/eskola/main/upload/users/3/31/my_files/slot.html

    https://uancv.edu.pe/ofinvestigacion/app/upload/users/3/328/my_files/slot-terlengkap.html

    https://micost.edu.my/EL/app/upload/users/2/209/my_files/slot-gacor.html

    https://www.academiacoderdojo.ro/elearningdev/app/upload/users/2/2442/my_files/slot-online.html

    http://campus-cidci.ulg.ac.be/courses/JUDICASINO/document/slot-termurah.html

    https://www.escueladerobotica.misiones.gob.ar/aula-ste/courses/LIVECASINO/document/slot-tergacor.html

    http://ccdipeepccqqfar.usac.edu.gt/chamilo/app/upload/users/3/358/my_files/slot-online.html

    https://cunori.edu.gt/campus/app/upload/users/7/7334/my_files/slot-online.html

    http://u-rus.com.ar/aula/app/upload/users/1/1322/my_files/slot.html

    http://icrodarisoveria.edu.it/chamilo/app/upload/users/1/1855/my_files/slot.html

    https://iestpliliagutierrez.edu.pe/clarolgm/courses/CASINO/document/slot.html

    http://pva.cobach.edu.mx/app/upload/users/7/7379/my_files/slot.html

    http://www.imb-pc-online.edu.gt/PL/app/upload/users/3/373/my_files/slot.html

    http://avcs.upeu.edu.pe/main/upload/users/3333/my_files/slot.html

    https://chamilo.fca.uas.edu.mx/app/upload/users/1/11186/my_files/slot-online/

    TechBizWeb
    Facebook Twitter Instagram Pinterest Vimeo YouTube
    • Home
    • Guest Post
    • About Us
    • Privacy Policy
    • Our Authors
    • Terms and Conditions
    • Contact
    © 2022 Tech Biz Web. Developed by Sawah Dev.

    Type above and press Enter to search. Press Esc to cancel.