After several weeks of stagnation seated, mortgage rates increased Moody's decision on Monday to demote the American credit rating.
Bond yields increased after the end of Friday announcement, and mortgage rates are safely followed on the treasure at 10 years.
The average rate on the 30 -year -old popular fixed loan reached 7.04% on Monday, according to Mortgage News. It's the highest level since April 11.
“The average mortgage lender was to take into account not only the market movement in the closing minutes on Friday, but also of the additional weakness observed this morning.
The April increase in mortgage rates had a direct effect on the housing market, which makes it go back to the heart of the spring season generally very busy. Pending sales of existing houses in April, counted by signed contracts, dropped by 3.2% compared to April of last year, according to Realtor.com.
House manufacturers also noted a sharp drop in demand in April. According to the monthly index of the National Association of Home Builders' Index.
There was a little return to the mortgage request for house buyers in the first two weeks of May, according to a weekly index of the Deathgage Bankers Association, but it was at this time that the rates were just about 6.9%. There was a slowdown marked among buyers recently, whenever the rate exceeds this 7%threshold. In addition, any increase in rates will eliminate some people likely to qualify for a mortgage.