Wood prices are rising and house prices are also rising. Lydia Hu from FOX Business with more.
Demand for mortgage applications remained lukewarm last week, with rates rising to their highest level since July.
The total volume of mortgage loans increased at a seasonally adjusted rate of 0.5% in the week ending February 26, according to the Mortgage Bankers Association. Refinancing rose 0.1%.
“Mortgage rates went up last week with market expectations of stronger growth and higher inflation,” said Joel Kan, associate vice president of economic and industry forecasts for the MBA, in a statement.
The 30-year fixed mortgage rate for a home with a balance of less than $ 548,250 increased to a seven-month high of 3.23%, up from 3.08% the previous week. Mortgage rates have increased in seven of the past nine weeks.
The increase in mortgage rates resulted in a decline in the overall refinancing portion for the fourth consecutive week, as refinancing orders decreased by more than 2%, to a minimum of four months.
Last week, orders fell 12%, while refinancing fell 11%, as rising rates and climate-induced power outages across Texas increased demand.
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Despite the recent market weakness, there are reasons for optimism.
“The housing market is entering the busy spring shopping season with strong demand,” said Kan.