Mortgage rates reach 7.49% as applications fall 4.2% this week
Business
Mortgage rates just jumped to their highest point in almost three years, with the average 30-year fixed rate now at 7.49%.
That's made a lot of folks rethink buying or refinancing.
Total mortgage applications dropped 4.2% in just one week, according to the Mortgage Bankers Association.
Refinances down 8% purchases down 2%
Refinance applications fell hard, down 8% last week and a massive 56% lower than last year.
Even purchase applications slipped by 2%, with FHA purchase applications dropping 6% as affordability gets tougher.
Interestingly, about one in 10 borrowers are still choosing adjustable-rate mortgages (ARMs), likely for their lower starting payments, even though they could mean higher costs down the road.