Mortgage rates have reversed their downward trend, climbing for the first time in five weeks. According to Freddie Mac data, rates have increased by 9 basis points. Yahoo Finance reporter Rebecca Chen delves into the implications of this shift for the housing market.
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This post was written by Angel Smith
Video Transcript
All right, we got the latest reading on the housing market, mortgage rates higher for the first time in five weeks.
We want to bring in Yahoo Finance’s Rebecca Chen joining us now with the details.
Hey Rebecca, hey Shana, we have seen mortgage rate, the fixed 30 year average rate increase about nine basis points this week according to Freddie Mac.
Now this is the first time since May, that rate has increased and also the first time in over four weeks that it went up.
Uh we’ve seen rates hover around a 7% mark for a while now.
And one housing actually said this has helped inventory to come back to the market.
And the reason is because with a more stabilized mortgage rate, more homeowners are willing to list their home by giving up their lower mortgage rate because and the reason is because they are getting a lot more used to the higher rate environment that we are seeing today.
Um What has been happening is as Americans, you know, move on with their life.
Maybe they have a new baby, maybe they need a new school district.
It’s getting to a time where some people have to move and put that inventory on the market.
Now, from the home buyer side, we have yet to see a return of demand at the activity on the mortgage activity.
Mortgage application is still very low according to the latest statistics.
But housing experts are saying that as we see mortgage rates stabilize or even decline, we will see more inventory on the market.
And in turn, that will help with the housing prices and bring buyers back.
Rebecca.
Thank you.
Appreciate it.
Have a great fourth.
