(WSJ) US mortgage rate for the 30-year loan is estimated at 5%, up from 4.72% last week and the highest since early 2011.
The rise in mortgages happens after remaining below 3% for more than half of last year, with the levels at a record low of 2.65% in January of the same year.
The rising financing costs has led to cooling activity, with the volume of loan applications for home buying down by 6% this week. The home refinancing volume is down 62% from the prior year.
The costly mortgage adds pressure to Americans in home buying amid rising inflation and expected Fed’s policy tightening.
Analysts now project that originations of mortgage rates of all types will decline by 36% this year to a lower $2.58 trillion.
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