U.S. mortgage rates rise ahead of inflation data - Freddie Mac

Hovnanian Enterprises

10/06/2022 11:46

** U.S. mortgage rates shot up this week on the back of 
increased economic activity and incoming inflation data,
mortgage finance agency Freddie Mac says 
    ** U.S. 30-year fixed-rate mortgage averaged 5.23% as of
June 9, up from last week, when it averaged 5.09% - Freddie Mac
    ** The housing market is incredibly rate-sensitive, so as
mortgage rates increase suddenly, demand is pulling back again -
Sam Khater, Freddie Mac's chief economist 
    ** The material decline in purchase activity and the rising
supply of homes for sale will cause a deceleration in price
growth to more normal levels - Khater
    ** Brokerage firm KBW said on Thursday that both
homebuilders Hovnanian Enterprises  HOV.N  and Toll Brothers Inc
 TOL.N  noted moderating demand in May while mortgage purchase
applications over the past 5 weeks fell 15% y-o-y
    ** A measure of mortgage loan application volume fell to its
lowest level in 22 years last week, Mortgage Bankers Association
data showed on Wednesday  urn:newsml:reuters.com:*:nN9N27E02O
    ** PHLX Housing index  .HGX  down 24.3% vs a 15.7% YTD
decline in S&P 500 Index  .SPX 
    ** Up to Thursday's close, U.S. homebuilders D.R. Horton Inc
 DHI.N , Lennar Corp  LEN.N , Pultegroup Inc  PHM.N  and Toll
Brothers Inc  TOL.N  had lost between ~23% and ~32% YTD 


 (Reporting by Kannaki Deka in Bengaluru)
 ((Kannaki.Deka@thomsonreuters.com))