As home prices in South Florida are still rising, fluctuations in mortgage rates are making the market difficult for buyers and sellers.
In the week from May 29 to June 2, mortgage rates reached 6.9%, which is the highest level since November last year, according to a weekly survey conducted by the Mortgage Bankers Association.
In response to the increase in rates, the number of applications for the purchase of housing at the national level again decreased by about 3% compared to a week earlier. They were 31% lower than a year earlier.
"The volume of applications for both purchase and refinancing of loans decreased last week due to higher rates. While the demand for refinancing is almost entirely determined by the level of interest rates, the volume of purchases is still limited by the shortage of housing in the market", said Mike Fratantoni, chief economist and senior vice president of research and industrial technology.
The jump in rates has made some buyers think about buying a property, while others are held back by high prices, which show almost no signs of decline.
Mortgage rates have been rising over the past month due to economic concerns about inflation and whether the debt ceiling will be raised or not.
"Inflation is still too high, and recent economic data are beginning to convince investors that the Federal Reserve will not cut rates in the near future", Fratantoni added.