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Average mortgage rates<\/a> on 30-year fixed home loans continued their march towards 8% this week as the Treasury yield surpassed 5%. Rates have been steadily climbing for seven straight weeks, the longest consecutive increase since Spring 2022, according to Freddie Mac<\/strong><\/a>\u2018s Primary Mortgage Market Survey.<\/p>\n The average 30-year, fixed-rate mortgage rose to 7.79% as of Oct. 26. That’s up 16 basis points from the previous week and up 71 basis points from 7.08% a year ago, the survey<\/a> showed.<\/p>\n HousingWire\u2019s Mortgage Rates Center<\/a> showed Optimal Blue\u2019s average 30-year fixed rate for conventional loans at 7.83% on Thursday, compared to 7.78% the previous week.<\/p>\n \u201cRates have risen two full percentage points in 2023 alone and, as we head into Halloween, the impacts may scare potential homebuyers,\u201d Sam Khater, Freddie Mac\u2019s chief economist, said in a statement. <\/p>\n \u201cPurchase activity has slowed to a virtual standstill, affordability remains a significant hurdle for many and the only way to address it is lower rates and greater inventory.\u201d<\/p>\n As mortgage rates keep climbing, mortgage applications<\/a> sank to their lowest level since 1995. <\/p>\n According to Bob Broeksmit, president and CEO of the Mortgage Bankers Association<\/strong><\/a> (MBA), the lack of inventory and the affordability challenges are the main culprits, steering prospective home shoppers to the sidelines.\u00a0<\/p>\n \u201cWe expect mortgage volume to decline nearly 30% this year to $1.64 trillion, before an expected 19% rebound in 2024 as rates finally start to trend downward,\u201d Broeksmit said in a statement.<\/p>\n However, recent home sales readings stressed the resiliency of the housing market as buyers kept shopping despite the challenging environment. <\/p>\n This week, new-home sales<\/a> and pending-home sales<\/a> posted month-over-month gains in September. However, Realtor.com<\/strong> Senior Economic Research Analyst Hannah Jones expects home sales activity to hover at a low level until the end of 2023. <\/p>\nElevated rates are making a dent in the mortgage volume<\/h2>\n
The housing market remains resilient<\/h2>\n