Average interest rates on the popular 30-year fixed mortgage topped 7% on April 1. Despite this, mortgage applications to buy a home increased 5% last week compared to the previous week.
Demand remained 10% lower than the same week a year ago, even with interest rates now 70 basis points higher. Anyone expecting interest rates to drop significantly is going to be waiting a while, says Realtor.com chief economist Danielle Hale. The latest economic data shows that the economy and job market are strong, she says. However, affordability weakens further, Hale adds, and homes will sell faster as competition increases. For confidential support, call the Samaritans on 08457 90 90 90 90 or visit a local Samaritans branch, see www.samaritans.org for details. In the U.S., call the National Suicide Prevention Line on 1-800-273-8255. For details on suicide matters, call the National Suicide Prevention Lifeline on 1 -800- 273-TALK (8255).