Home purchase applications plunge to 28-year low as mortgage rates jump

Bullseye American Ingenuity Fund Portfolio Manager Adam Johnson and Payne Capital Management President Ryan Payne discuss their outlooks for the housing market, retail industry, and prospects of a recession.high mortgage ratesThe Mortgage Bankers Association’s index of mortgage applications tumbled more than 18%, the biggest weekly drop since 2015, to 147.1 for the week ended Feb. 17, according to new data published on Wednesday.

"This time of the year is typically when purchase activity ramps up, but over the past two weeks, rates have increased significantly as financial markets digest data on inflation cooling at a slower pace than expected," said Joel Kan, MBA's vice president and deputy chief economist.

Although mortgage rates have fallen from a peak of 7.08% notched in November, they have recently reversed that trend and started to march higher amid rate-hike fears. The average rate for aclimbed to 6.32% last week, according to data from mortgage lender Freddie Mac. That remains significantly higher than just one year ago, when rates hovered around 3.92%.

"The increase in mortgages rates has put many homebuyers back on the sidelines once again, especially first-time homebuyers who are most sensitive to affordability challenges and the impact of higher rates," Kan said.GET FOX BUSINESS ON THE GO BY CLICKING HERE Even with higher interest rates putting homeownership out of reach for millions of Americans, prices are still steeper than just one year ago. The median price of an existing home sold in January was $359,000, an increase of 1.3% from the same time a year ago, according to a separate report from the National Association of Realtors. This marks 131 consecutive months of year-over-year home price increases, the longest-running streak on record.

Wow . . shocking. You mean the big corporations that was sucking up all the real estate didn't like rising rates!?

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