NAHB CEO Jerry Howard discusses the massive exodus from cities creating high demand in the housing market and regulations slowing housing construction.
The higher mortgage interest rates have decreased the demand for applications in the past week.
According to the latest Mortgage Bankers Association survey, filings are down 11.4% from a week earlier.
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The refinancing index is down 11 percent from the previous week.
The average contract rate for 30-year fixed-rate mortgages rose from 2.98% to 3.08%.
“Mortgage rates have risen in six of the past eight weeks, with the 30-year fixed rate benchmark hitting above 3 percent last week to its highest level since September 2020,” said Joel Kan, Associate Vice President of Economic and Industry Forecasting of MBA. “As a result of these higher rates, total refinancing activity fell 11 percent to its lowest level since December 2020, but remained 50 percent higher than a year ago.”
HOME PRICES ARE RISING AT THE FASTEST RATE IN 7 YEARS
Texas saw a massive drop in activity due to the harsh winter weather that hit many households and lenders. Mortgage activity was down more than 40% in the state.
The seasonally adjusted purchasing index decreased by 12% compared to a week earlier.
“The housing market in most of the country remains strong, with activity 7 percent up last week from a year ago,” Kan added.
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The survey covers more than 75% of all US residential mortgage applications and has been conducted weekly since 1990.