Mortgage demand shrinks as interest rates hit the highest level in nearly 23 years
Mortgage interest rates just hit a level not seen since the year 2000. As a result, mortgage demand is now sitting near a 27-year low.
Total mortgage application volume fell 1.3% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 25.5% lower than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.41%, from 7.31%, with points decreasing to 0.71 from 0.72 (including the origination fee) for loans with a 20% down payment. The rate was 6.52% one year ago.
The 30-year fixed jumbo mortgage rate increased to 7.34%, the highest rate in the history of the MBA’s jumbo rate series dating back to 2011.
Yep. Bought a home right before covid when interest rates were super low, I would love to sell my home and move but it would be the dumbest financial decision I've ever made.
Not to mention losing a couple bedrooms just to afford a new place.
Rent out your home and rent something else where you want to go. That way you keep building equity while renting and you provide a home for someone else. Sell when you are ready to buy in the new location or market conditions improve in your favor.
If you don't want the landlord duties, outsource your home to a real estate management company.
Edit: https://fortune.com/2023/03/13/housing-market-homeowners-who-held-onto-low-mortgage-rates-are-becoming-accidental-landlords-renters-real-estate/