Mortgage Rates Near An Astonishing 7% | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    Mortgage rates are approaching 7% as the housing market continues to experience turmoil.

    The 30-year fixed mortgage rate remained below 3% for much of the past two years, according to data from government-backed mortgage company Freddie Mac. Since the beginning of the year, however, the rate has surged from just over 3% and reached 6.29% as of last week - marking a 0.25% increase from the preceding week alone.

    "The housing market continues to face headwinds as mortgage rates increase again this week," Freddie Mac Chief Economist Sam Khater said in a press release last week. "Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels."

    Contributing to the soaring mortgage rates are actions from the Federal Reserve to raise the target federal funds rate by 0.75%, a move which followed two identical hikes in June and July, in an attempt to relieve elevated inflationary pressures. The policy provoked a stock market selloff.

    Mortgage applications have therefore fallen 3.7% in a single week, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The portion of mortgage activity attributable to refinancing dropped from 32.5% to 30.2%.

    Meanwhile, the National Association of Realtors' Pending Home Sales Index fell 2% in August and 24.2% year-over-year. "The direction of mortgage rates - upward or downward - is the prime mover for home buying, and decade-high rates have deeply cut into contract signings," National Association of Realtors Chief Economist Lawrence Yun remarked in a statement. "If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize."

    In the second quarter of 2022, the median sale price of a home in the United States was $440,300, according to data from the Department of Housing and Urban Development, marking a 36% rise from $322,600 in the second quarter of 2020. Home prices are expected to increase another 4% in 2023 - a relative slowdown from 17.8% in 2021 and 12.8% in 2022.

    The western portion of the United States has witnessed the most severe slowdown in purchase activity amid the high prices, with the region's Pending Home Sales Index falling year-over-year by 31.3%. "Home prices are the least affordable in the West and, consequently, the region suffered deeper annual declines in contract signings due to rising interest rates when compared to other areas of the country," Yun added. "However, the recent increases of the last two months, though small, are encouraging."

    The pressures in the housing market are also impacting conditions in the rental space, particularly in large cities on the west coast. In Seattle, Washington, expensive real estate is compelling would-be homebuyers to search for apartments, prompting the city council to unanimously greenlight a special election that will determine whether officials should create more affordable housing, as detailed in an analysis from Zumper.

    Six of the 10 cities with the most expensive rental rates for one-bedroom apartments are located in California. Although the national average for one-bedroom rent reached $1,503 in September, some rental markets - such as San Jose, California; Miami, Florida; and Nashville, Tennessee - saw moderate month-over-month decreases in average one-bedroom rent.

poll#162

In what may be the most divisive period in modern American History, even more divisive than the turbulent sixties due to today's lack of patriotism, consider what are the major catalysts causing so much of this calamity of conflict, and vote: What most instigates the division of America, on this day September 20, 2022?

  Racism within our society

  Sex realignment to the detriment of our society.

  Biden /Harris Wide Open Southern Border Policy for the Demographic Upheaval of OUR Constitutional Republic

  Rampant Crime in Democratic controlled cities, and the possible contagion elsewhere

  Covid Pandemic, and its mishandling at the political, and bureaucratic levels.

  The unresolved questions /allegation regarding the flawed 2020 General Election

  January 6th Riot or "Armed Insurrection", depending upon patriotic perspective

  Joe Biden as Divisive Leader; Ineffective and Corrupt Executive

  Failed Education Industry, from an overall perspective, regarding all levels of education.

  Propagandistic Media in complete conflict with the First Amendment's guarantee of Freedom of Speech, and the awesome responsibility of a Free Press..

  "Orangeman Bad!"

  Bureaucracy rushing to a behemoth size, its unjustified expense, and far too often overreach.

  The Weaponized Deep State for political purposes

  A secular ambivalence to all that is real.

  Record number of overdose deaths from opioids and now Fentanyl

  Biden Administration's disastrous Foreign Policy

  Bidenflation /supply chain failure inevitably evolving into stagflation and recession.

  "Ultra MAGA Extremists" freely speaking louder AND LOUDER!

927 total vote(s)     What's your Opinion?

poll#132

Considering that Joe Biden is considered by so many to be the Imposter President: Is he actually knowledgeable enough, wise enough, patriotic enough to be this Constitutional Republic's president at this difficult point in these tumultuous times?

  Yes, Mr. Biden is thoughtful and kind, and just so different from the "Orange Man".

  No, this representation of "president" is either too corrupt, too stupid, or both to be a real president.

  I just want the fun guy, who knew how to make stuff work back.

670 total vote(s)     What's your Opinion?

poll#154

Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?

  Yes, the Democrats have a bold plan, yet to be revealed, to save us.

  No, there will have to be a complete undoing of the damage done by these Democrats.

  I can't do simple math, so how am I to understand the concept of basic economics.

1,216 total vote(s)     What's your Opinion?