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MarketMinute | Mortgage Rates and Prices Rising At The Same Time?

Oct 14
6:34
AM
Category | Markets in a Minute

  • Both wholesale and consumer inflation reports showed inflation continued to rise in September despite multiple Fed rate increases.
  • The labor market remains strong. Nonfarm payrolls increased more than expected in September, and unemployment fell to 3.5%.
  • Jobless claims were up slightly last week. Claims reached their highest level since August but still showed a stable labor market.

  • Purchase mortgage applications dropped 2% for the week. The average purchase loan fell below $400K for the first time since December 2021.
  • Higher mortgage rates are creating an appetite for adjustable rate mortgages. ARMs represented about 12% of last week's applications.
  • Despite higher mortgage rates, home prices remain higher compared to a year ago and are unlikely to fall steeply due to persistently tight supply.

 

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