The 30-year fixed-rate mortgage's average contract interest rate has climbed to 3.72% from 3.64%, prompting fears among homebuyers that they will no longer be able to afford the properties they want. According to the Mortgage Bankers Association's seasonally adjusted index, mortgage refinancing applications, which are particularly sensitive to daily rate swings, have declined 13% for the week and are 53% lower year over year.
In addition, considering the Fed's decision to hike interest rates in March to tame inflation, persistent supply chain crisis, and a tightening labor market, the home building industry's growth prospects could be negatively affected.
