Mortgage rates rise for fifth straight week
Published On Oct 31, 2024, 12:13 PM
Mortgage rates have increased for the fifth consecutive week, with the average rate on a 30-year fixed mortgage climbing to 6.72%, up from 6.54% last week. This rise comes amid a sluggish housing market where demand is flat. Economists suggest that volatility in mortgage rates is expected due to potential market influences like economic reports, the upcoming election, and interest rate decisions by the Federal Reserve. However, it is believed that mortgage rates may have peaked and are unlikely to reach previous highs seen earlier in the year.
Stock Forecasts
XHB
Negative
The ongoing rise in mortgage rates typically has a negative impact on the housing market by inhibiting demand from potential buyers, which could affect homebuilders and related stocks. However, with expectations that rates might stabilize or decrease slightly, this could present opportunities for investments in sectors related to real estate and housing.
DHI
Negative
Higher mortgage rates are likely to strain the affordability of housing, typically leading to lower residential sales. This would adversely impact large homebuilder companies. Investors may want to consider shorting homebuilder stocks as demand weakens and borrowers remain hesitant to purchase new homes.
Related News
Will mortgage rates fall? Your Budget questions answered
Oct 30, 2024, 3:48 PM
Chancellor Rachel Reeves has announced a raft of changes to taxes and spending in the Budget.
Pulte Capital CEO Bill Pulte discusses the housing supply on 'Cavuto: Coast to Coast.'
Stock market today: Nasdaq heads for record close as investors await Alphabet earnings
Oct 29, 2024, 3:00 PM
Investors absorbed a fresh rush of earnings and waited for Alphabet to lead in the week's Big Tech results.