Mortgage rates march higher for third straight week

Published On Oct 17, 2024, 12:07 PM

Mortgage rates in the U.S. have increased for the third week in a row, with the average rate on a 30-year fixed mortgage reaching 6.44% from 6.32% the previous week. This rise in rates is contributing to a slowdown in housing demand, as high prices and elevated rates deter potential buyers. Approximately 80% of current mortgage holders have rates below 5%, prompting many to hold off on buying or selling until rates potentially decrease.

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Stock Forecasts

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Negative

The upward trend of mortgage rates is likely to continue impacting the housing market negatively. Higher borrowing costs can dampen demand for homes, as more prospective buyers find it difficult to afford higher monthly payments. This trend could lead to a continued slowdown in housing market activity, affecting related sectors.

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Negative

REITs, especially those focused on residential or commercial real estate, could face pressure due to rising mortgage rates, which often correlate with higher financing costs. Investors may want to watch for potential downturns in these types of investments.

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