With home prices in South Florida still on the rise, the ebb and flow of mortgage rates are making the market tricky for buyers and sellers.
Mortgage rates reached 6.9% this week, the highest level seen since last November, according to a weekly survey done by the Mortgage Bankers Association.
Some lenders were also quoting rates for 30-year loans with rates above 7% last week, the association added.
In response to rising rates, purchase applications for a home on a national level decreased once again, dropping about 3% compared to the week before. They were 31% lower than the year prior.
“Application volumes for both purchase and refinance loans decreased last week due to these higher rates. While refinance demand is almost entirely driven by the level of rates, purchase volume continues to be constrained by the lack of homes on the market,” said Mike Fratantoni, the chief economist and senior vice president of Research and Industry Technology.
The jump in rates has put a pause for some buyers looking to get into a home, while others are constrained by high prices that show little signs of dropping.
“People want the best rate possible,” said Diane Mastay, mortgage director of Tropical Credit Union. “I think we would see more activity if our rates were in the fours or fives, but I think it’s a wait-and-see attitude to see if rates will go down.”