The benchmark 30-year fixed-rate mortgage hit a three-year high of 4.5 percent last week. And it’s taking a toll on loan demand. Applications for home loans fell 8.1 percent last week. Mortgage refinance applications fell even more sharply. They’re down 14 percent over the week and 54 percent over the year.
Experts say home sales are likely to trend lower over the next few months. But unless mortgage rates spike or the economy falls off a cliff, the drop in new home sales should be modest, they say.
NTD spoke with Jeff Musgrave, a Florida real estate broker, about the situation.