Mortgage applications dropped last week as rates shot up
Tariff-sparked turmoil is starting to show up in the housing market.
Mortgage applications for new home purchases and refinancings dropped sharply last week after stock and bond market volatility sent mortgage rates higher.
Applications to purchase a home fell 5% through Friday compared to a week earlier, according to the Mortgage Bankers Association. Refinancing applications dropped 12% in the same period.
'Purchase volume remains almost 13 percent above last year's level, but economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase,' Mike Fratantoni, MBA's chief economist, said in a statement.
Read more: Mortgage rates history — see how rates have changed over time
After a period of stability around 6.6%, average 30-year fixed mortgage rates jumped 20 basis points last week to 6.81%, according to the MBA. Mortgage rates followed 10-year Treasury yields higher after investors dumped stocks and bonds amid fears about President Trump's tariff policies. Trump later delayed higher tariffs on some countries, citing concerns over the bond market's reaction.
By subscribing, you are agreeing to Yahoo's
Terms
and
Privacy Policy
As of Tuesday, the average 30-year fixed mortgage rate was 6.88%, according to Mortgage News Daily.
As mortgage rates rose, more homebuyers opted for adjustable-rate mortgages, which carry initial rates closer to 6%. ARMs made up 9.6% of application activity last week, the highest level since November 2023, when average 30-year mortgage rates were north of 7%.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
Sign up for the Mind Your Money newsletter
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dominion Post
an hour ago
- Dominion Post
DOGE terminates $9 million state digital equity grant
dbeard@ MORGANTOWN – A $9 million federal grant to the state Economic Development Department recently got DOGE'd. But the department and Gov. Patrick Morrisey both failed to answer questions about it. The $9,011,588 grant came from the U.S Department of Commerce National Telecommunications and Information Administration to support the state's digital equity program. DOGE gives the termination date as May 9 and notes a total savings of $8,791,067.90. The $2.75 billion Digital Equity Act, passed in 2021 as part of the Infrastructure Investment and Jobs Act, was intended to expand internet access for certain disadvantaged populations, according to the Associated Press. 'It gave states and tribes flexibility to deliver high-speed internet access to families that could not afford it, computers to kids who did not have them, telehealth access to older adults in rural areas, and training and job skills to veterans.' But President Trump announced in late May his intention to end it, AP reported. USASpending shows that the grant began Dec. 1, 2024 and was slated to run through Nov. 30, 2029. Its stated purpose was to implement West Virginia's digital equity plan. Among its missions: launching digital skills and local digital equity planning programs; a piloting program to supply laptops; and collecting data on such things as number of covered populations served, total number served, and personal testimony of participants. The grant description said, 'The proposed projects will result in narrowing the digital divide, improved access to digital resources, and increased accessibility and impact initiatives for community development.' Morrisey and the Economic Development Department failed to respond to three inquiries sent to each on two separate days. In early January, echoing Trump, Morrisey issued an executive order eliminating DEI – Diversity, Equity and Inclusion – from state government. DEI opponents generally view it as a form of reverse racism. Among the questions we asked Morrisey and the department were if the grant termination was tied to DEI opposition, what the impact of the grant termination might be, and if the state would continue the digital equity program via some other means. The general consensus is that West Virginia's broadband access challenges are tied to terrain and the state's rural nature, and we asked Morrisey and the department how those issues factor into the aims of the digital equity plan – getting no answer, of course. We also asked about the difference between the full grant amount and the listed savings – $220,520.10 – and if some of the money has been spent, what on, and if they have to return it. As it happens, on Thursday, Morrisey announced funding for broadband infrastructure deployment projects in 10 counties to facilitate the expansion of fiber-to-the-home broadband infrastructure. Morrisey said that with the installation of approximately 362 miles of fiber infrastructure, 2,897 locations will gain access to high-speed broadband. The counties are Preston, Calhoun, Doddridge, Gilmer, Grant, Jackson, Lewis, Mason, Pendleton and Putnam.
Yahoo
an hour ago
- Yahoo
Why Kitwave Group plc (LON:KITW) Could Be Worth Watching
While Kitwave Group plc (LON:KITW) might not have the largest market cap around , it saw a significant share price rise of 32% in the past couple of months on the AIM. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Kitwave Group's outlook and valuation to see if the opportunity still exists. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Kitwave Group's ratio of 16.08x is trading slightly below its industry peers' ratio of 16.28x, which means if you buy Kitwave Group today, you'd be paying a decent price for it. And if you believe that Kitwave Group should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. Furthermore, it seems like Kitwave Group's share price is quite stable, which means there may be less chances to buy low in the future now that it's priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta. See our latest analysis for Kitwave Group Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Kitwave Group's earnings over the next few years are expected to increase by 60%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? KITW's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at KITW? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on KITW, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for KITW, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 3 warning signs for Kitwave Group you should know about. If you are no longer interested in Kitwave Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
New York Times
an hour ago
- New York Times
Palm Beach Has Never Been Richer. The Locals Aren't Pleased.
There are no star maps on Palm Beach, and many of its biggest estates are hidden behind elaborate landscaping. To learn what belongs to whom, and how much it cost, a guide is needed, and Dana Koch, who has been selling real estate here for 22 years, knows the area cold. He's a veteran docent in a zoo where the creatures are billionaires and it's difficult to see the cages. 'Howard and Beth Stern live here,' he said, pointing to a gate flanked by shrubbery. 'This whole place, he paid about $50 million for it years ago. Now it's worth $200 million.' On it goes, an inventory of rich and famous people, a patter that rambles along, like Mr. Koch's car, at about 10 miles an hour. Jon Bon Jovi lives there. That's where Roger Ailes slipped in the shower and died. William Lauder built this, after buying Rush Limbaugh's place for $155 million and tearing it down. Some homes are identified by job (N.F.L. owner, sugar magnate) others by names, (Dr. Oz, Tom Ford, Charles Schwab). That lot once belonged to Jeffrey Epstein, whose place was razed. A new house is under construction, and the owners, Mr. Koch speculates, are going to apply for a new address. These have been busy months for Mr. Koch, 52, who is not related to the famous Republican donors. ('Same name, different bank account.') Palm Beach is, of course, home to President Trump's private club, Mar-a-Lago. After the election in November, there was a 'Trump bump,' with $100 million worth of property on Palm Beach going under contract in the span of a week. Late last year, the Fox News host Sean Hannity purchased a $23.5 million mansion in nearby Manalapan, then spent $14.9 million on an oceanfront townhouse in Palm Beach in January. (He'd previously spent $5.3 million for a townhouse here in 2021.) Want all of The Times? Subscribe.
