Wood prices are rising and so are house prices. FOX Business’ Lydia Hu and more.
Demand for mortgage applications remained low last week as rates rose to their highest level since July.
The total mortgage lending volume increased by a seasonally adjusted rate of 0.5% according to the mortgage lending association in the week ended 26 February. Refinancing increased by 0.1%.
“Mortgage rates rose last week due to market expectations of stronger growth and higher inflation,” said Joel Kan, co-vice president of economic forecasting.
The 30-year fixed mortgage rate for a home with a balance of less than $ 548,250 rose to a seven-month high of 3.23%, from 3.08% the previous week. Mortgage rates have risen in seven of the past nine weeks.
The rise in mortgage rates led to the overall share of refinancing falling for a fourth consecutive week as refinancing applications declined by more than 2% to a four-month low.
Last week, applications fell by 12%, while refinancing fell by 11% as rising rates and power outages caused by the weather in Texas increased demand.
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Despite the recent weakness in the market, there is reason for optimism.
“The housing market is entering the busy spring buying season with strong demand,” Kan said.