The 30-year fixed-rate mortgage averaged 4.94% in the Nov.8 week, a gain of 11 basis points, mortgage finance provider Freddie Mac said Thursday. That was the highest for the popular loan product since February, 2011. The 15-year fixed-rate mortgage averaged 4.33%, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.14%, both up 10 basis points during the week.
In the housing market, meanwhile, the slow and steady upward march of mortgage rates is taking a toll. With options scarce and affordability stretched, higher borrowing costs are thwarting buyers like Andy and Emerline Hunte.
The Huntes and their two boys have been searching for a house for two years, while sticking it out in a cramped basement apartment in the East New York section of Brooklyn. Saving for a down payment has been “arduous,” Andy told MarketWatch. “We may end up dipping into our 401(k) to put 20% down in order to not carry mortgage insurance.”
But rising rates – and prices – have put that dream aside for now, and the Huntes are now targeting a single-family home with enough bedrooms and “a large enough backyard for our little one to play.” The “little one” also needs a good school district, but his parents haven’t been able to find a home that they can afford that checks all those boxes.
The family has been house-hunting for so long that their first pre-approval had what bond traders sometimes call a “3-handle.” That rate, 3.875%, was renewed a year later at 4.875%, and now Andy sees a 5% mortgage looming ahead.
“The increase has made it more difficult to afford the mortgage we could have afforded two years ago,” Hunte said. “Makes me really wish I had purchased when I first started looking.”
The post Mortgage Rates Surge to a Near 8-Year High as House Hunters Race the Clock appeared first on Real Estate News & Insights | realtor.com®.DISCLAIMER: Many of the pages and articles on this website contain information and excerpts provided by third-parties from around the web; as such, the operators of this website assume no liability or responsibility for any of the contents contained herein, or the contents of websites that we may link to. Furthermore, all copyrights belong to their original creator(s). Use of any portion of this website constitutes full acceptance of this disclaimer.