The 15-year FRM averaged 6.06% this week, down from 6.11% the prior week. A year ago, the 15-year rate stood at 5.64%.
“This week’s rise in mortgage rates can’t be attributed to one or two data points,” said Holden Lewis, NerdWallet’s home and mortgage expert. “The increase is brought on by a general feeling that the economy is more resilient than expected. After 11 Fed rate hikes, companies are still hiring, and inflation is sticking around. Consequently, mortgage rates keep hovering around 7%.”
Mortgage lock volume growth
Despite the challenges posed by higher rates, mortgage lock volume – an indicator of home purchase activity – continued rising in March, up 15.36% from the prior month, according to the latest MCT Indices Report.
Andrew Rhodes, head of trading at MCT, commented: “Even amid the challenges posed by higher rates, we continue to witness incremental increases in lock volume. Market expectations indicate a 50% chance for a rate cut in June. However, robust economic data in the coming months may delay rate cuts until July or September, potentially resulting in sideways or even lower production.”
Source: mpamag.com