Can the housing market still grow with mortgage rates over 6.64%?
With rates near yearly highs and above 6.64%, purchase apps slipped 7% weekly and 2% yearly, but pending sales stayed ahead of 2025.
The recent surge in mortgage rates, now over 6.64%, is undoubtedly having an impact on the housing market. According to the latest data, purchase applications have slipped 7% weekly and 2% yearly, which may raise concerns about the market's growth prospects. However, it's essential to consider this decline in the context of the overall market trends.
Pending sales, for instance, are still ahead of 2025, indicating that there is still some momentum in the market. This suggests that while higher mortgage rates may be affecting purchase decisions, they are not entirely derailing the market. The housing market has shown resilience in the face of rising rates before, and it's possible that this trend will continue. The key factor to watch will be how rates influence affordability and buyer behavior over the coming months.
As the market navigates these higher rates, what to watch next will be the response from lenders, policymakers, and industry stakeholders. Will we see any adjustments to mortgage products or government policies aimed at supporting affordability? How will builders and sellers adapt to the shifting landscape? The answers to these questions will help shape the market's trajectory and determine whether growth can be sustained despite the headwinds posed by higher mortgage rates.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.