U.S. Housing Market Slows as Mortgage Rates Jump Above 6% and Inflation Nears 3%
Updated
Updated · Appen Media · Jun 17
U.S. Housing Market Slows as Mortgage Rates Jump Above 6% and Inflation Nears 3%
3 articles · Updated · Appen Media · Jun 17
Summary
Mortgage applications and home sales activity have cooled sharply in recent weeks as higher borrowing costs, gasoline prices and inflation weaken consumer confidence.
Since the March 10 escalation in the Persian Gulf conflict, rising energy prices have lifted bond yields and pushed mortgage rates back above the 6% level that had briefly helped revive demand.
Before that shock, February and early March showed improving sales, stronger-than-normal seasonal applications, inflation below 3% and gasoline near $2.50 a gallon.
The report argues demand has been delayed rather than destroyed, with buyers likely to return quickly if geopolitical tensions ease and mortgage rates retreat toward pre-March levels.