Mortgage rates shot higher last week, as stronger economic data stoked more fear that the Federal Reserve will not lower interest rates anytime soon.
In turn, mortgage demand dropped to the lowest level since the end of February.
"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."
With home prices starting to regain steam, mortgage rates higher and inventory levels still well below normal, potential homebuyers are getting hit from all sides on affordability.
The direction of mortgage rates depends mostly on new reads on the economy.
Persons:
Michael Fratantoni
Organizations:
Federal Reserve, Mortgage Bankers Association