US Mortgage Demand Softens as 30-Year Fixed Rate Rises to 6.78%
JH Kim
Summary
- The average mortgage rate on a 30-year fixed loan in the US rose to 6.78%, the highest level in three weeks.
- As borrowing costs increased, mortgage applications for home purchases fell 5% from a year earlier.
- High mortgage rates are constraining housing market demand in the US, while Treasury yields and the Federal Reserve's policy path are set to influence future moves.
Forecast Trend Report by Period
US mortgage rates rose to their highest level in three weeks, signaling weaker demand for home-purchase loans.
Cointelegraph reported on August 26 that the average rate on a 30-year fixed mortgage in the US climbed to 6.78%, the highest level in the past three weeks.
Mortgage applications for home purchases fell 5% from a year earlier as borrowing costs increased.
Higher mortgage rates are constraining demand in the US housing market. Treasury yields and the Federal Reserve's policy path are set to influence the direction of mortgage rates going forward.
JH Kim
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