According to Realtor.com, mortgage rates have reached 6%, double what they were a year ago, and the highest they’ve been since November 2008. The increased rates are making homebuyers more hesitant to refinance or buy a home, as reflected in the Market Composite Index, a measure of mortgage application volume. The Mortgage Bankers Association (MBA) reported that the index is now at its lowest level since December 1999. Even though rates have increased, government loans from the Veterans Administration and the U.S. Department of Agriculture, which benefits first-time buyers, have also increased in the past few weeks.
The Purchase Index—which measures mortgage applications for the purchase of a home—rose by 0.2% from the previous week. The average contract rate for the 30-year mortgage for homes sold for $647,200 or less was 6.01% for the week ending September 9. That’s up from 5.94%% the week before, the MBA said. For homes sold for over $647,200, the average rate for the 30-year was 5.56%. The 15-year rose to 5.3%. The rate for adjustable-rate mortgages, which comprise 9.1% of total applications, rose to 4.83%.
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