Mortgage rates spike for third straight week while buyers grow cautious

Published On Oct 17, 2024, 12:01 PM

Mortgage rates continue to climb, reaching 6.44% for a 30-year fixed mortgage and 5.63% for a 15-year mortgage. This marks the third straight week of increases, leading to reduced activity from homebuyers and refinancers, with applications to purchase homes falling by 7% week-over-week. While applications are still higher compared to last year, the rising rates are causing caution among potential buyers, reflecting adjustments in market expectations regarding Federal Reserve interest rate cuts.

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The rise in mortgage rates is likely to dampen homebuying activity and refinancing, which could hurt real estate sectors and related investments. Investors might want to be cautious about stocks linked to real estate and housing financing, as the overall market sentiment could shift negatively in the face of higher rates.

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