Rates for home loans roared higher, taking the benchmark mortgage product to a new high and set up a fresh test for an already strained housing market.
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.
- The 30-year fixed-rate mortgage and the 15-year fixed-rate mortgage are both up 10 basis points during the week.
- Fixed-rate mortgages move in line with the U.S. 10-year Treasury note, although with a slight delay.
- Bond yields have churned higher as investors increasingly expect the federal government to issue more debt to fund the growing deficit.
As the housing market stagnates, American homeowners are staying put for the longest stretches ever.
Housing-market headwinds are keeping American homeowners in their properties for the longest stretches on record, in a sharp distortion of the mobility Americans have for decades prized.
Across the country, homes that sold in the third quarter of this year had been owned an average of 8.23 years, according to an analysis from Attom Data Solutions. That’s almost double the length of time a home sold in 2000, when Attom’s data begin, had been owned.
It’s partly the long tail of the housing crisis that’s created stagnant conditions and a less dynamic housing market, Attom spokesman Daren Blomquist told MarketWatch.
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