“Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs,” Khater said. “We expect the decline in demand to soften home price growth to a more sustainable pace later this year.”
Read more: Closing costs keep pace with rapidly rising home prices
According to the Mortgage Bankers Association, refinance mortgage applications were down 9% and purchase applications posted an 8% decrease. Both new and pending home sales also suffered declines in March, down 8.6% and 1.2%, respectively.
Mortgage Professional America reached out to mortgage originators to ask how they are factoring rising rates into their business capacity and outlook for the mortgage market.
“I still think the rates are low, especially from when I started, so it is still a good time to buy,” said Allison Rizzo, broker/co-owner of Motto Mortgage Success. “Here in New Jersey, like most of the country, we are having an inventory shortage, and the market is crazy. I’ve read reports that say it’s going to continue to go up, and some have said it’s going to plateau. I’m not really sure. All I know is that every client is going to have a different need, and I’m ready to help.”
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