For the first time in 7 years, interest rates have risen to over 5% and as a result mortgage applications fell. This will not only affect home loan applications but also home sale prices. As interest rates rise the housing market conditions will change. Sellers may have to reduce their prices in order to sell due to homes interest rates being less affordable.
Below you can find an average interest rate according to the Mortgage Bankers Association mba.org:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since February 2011, 5.05 percent, from 4.96 percent for 80 percent loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to its highest level since July 2011, 4.99 percent, from 4.93 percent for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to its highest level since April 2011, 4.98 percent, from 4.95 percent.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2010, 4.44 percent, from 4.39 percent for 80 percent LTV loans.
Source: https://www.mba.org/mba-newslinks/2018/october/mba-newslink-wednesday-10-10-18/30-year-fixed-tops-5-in-mba-weekly-survey?_zs=RUKPN1&_zl=20sh4
Interest rates are rising and the home market is headed for a change
