Mortgage rates climb north of 6.5% for first time since August

Published On Oct 24, 2024, 12:07 PM

Mortgage rates have increased for the fourth week in a row, now reaching an average of 6.54% for a 30-year fixed rate mortgage, the highest since August. This rise in mortgage rates, which closely follows an uptick in Treasury yields, is contributing to a cooling housing market. Existing home sales fell to their lowest level since 2010, and both purchase and refinancing applications have seen declines. These trends suggest a challenging environment for the housing sector as we approach the seasonal slowdown.

Stock Forecasts

With rising mortgage rates likely to dampen housing demand and existing home sales already falling significantly, the outlook for real estate-related investments appears negative. Investors may want to be cautious when considering stocks in the real estate sector or related financial services. Additionally, there may be increasing interest in selecting investments that benefit from rising rates, such as ETFs focused on Treasury bonds.

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