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Lower mortgage rates are spurring housing demand

Housing Wire

Mortgage rates recently hit a year-to-date low, coinciding with ongoing market disruptions from tariffs. In fact, if mortgage rates head toward 6%, we will have a positive year here. Last year, we saw mortgage rates increase from 6.63% to about 7.50%, leading to challenges in the purchase application data.

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Mortgage applications rebounded 20% last week as rates dipped

Housing Wire

Mortgage applications jumped 20.0% from the prior week, according to data from the Mortgage Bankers Associations (MBA) weekly mortgage applications Survey for the week ending April 4, 2025. The refinance index increased 35% from the previous week as mortgage rates took a dip. of total applications from 38.6% from 15.8%

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How are mortgage rates affecting housing demand?

Housing Wire

It has been almost two months since mortgage rates spiked again, and my initial thought was this would tank housing demand. We had a positive 18-week period with purchase applications before mortgage rates started rising in September. Initially, the data showed more robust performance as mortgage rates approached 6%.

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Lower mortgage rates spark housing demand heading into spring

Housing Wire

Earlier this year, when mortgage rates soared to 7.26%, a cloud of worry hung over the housing market many feared that home sales would tumble in 2025, fueled by concerns about inflation and tariffs. But when it seemed doom and gloom would prevail, the 10-year yield dropped, pulling mortgage rates lower in a lovely slow dance.

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Rising mortgage rates zap builder confidence

Housing Wire

Todays housing starts data exceeded estimates; however, a closer examination of the report with the builder confidence reveals that the recent rise in mortgage rates , approaching 7.25%, has negatively affected builder sentiment. Since late 2022, our analysis indicates that mortgage rates in the 6%-6.5%

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Mortgage rates fall after remarks by Fed President Waller

Housing Wire

The 10-year yield and mortgage rates have been on a wild ride lately, even testing my top-end forecast at 7.25%, but today, the 10-year yield fell after remarks by Fed President Chris Waller about whether the Fed would do even more rate cuts than the market was anticipating. However, we know that this is unlikely to happen.

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All those 2025 mortgage rates forecasts are now wrong

Housing Wire

Its late December so all the 2025 mortgage rate forecasts have been published. Most housing market analysts expect mortgage rates to spend the year with a 6 handle. The most optimistic predictions assume 2025 will see mostly low 6s for the 30-year fixed rate mortgage. Unfortunately, all of them are already wrong.

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