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Lumber prices are skyrocketing and are also pushing up house prices. FOX Business’ Lydia Hu with more.
Demand for mortgage applications remained lukewarm last week, with rates reaching their highest level since July.
Total mortgage volume increased by a seasonally adjusted rate of 0.5% during the week ended Feb. 26, according to the Mortgage Bankers Association. Refinancing rose 0.1%.
“Mortgage rates jumped last week on market expectations of stronger growth and higher inflation,” said Joel Kan, MBA associate vice president for economic and industry forecasting, in a communicated.
The 30-year fixed mortgage rate for a home with a balance below $ 548,250 climbed to a seven-month high of 3.23%, down from 3.08% the week before. Mortgage rates have risen in seven of the past nine weeks.
Rising mortgage rates drove the overall share of refinances down for a fourth consecutive week, as refinancing requests fell more than 2% to a four-month low.
Last week, demands fell 12% as refinances fell 11% as rising rates and weather-related blackouts across Texas boomed demand.
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Despite recent market weakness, there is cause for optimism.
“The housing market is entering the busy spring shopping season with strong demand,” Kan said.
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