Good morning! It's Kristin with your daily morning digest.
Rising mortgage rates are taking a bite out of homebuying interest, as mortgage applications dropped by 5% last week, according to data out today from the Mortgage Bankers Association. Refinancing activity also took a hit last week, sinking 8% from the previous week, and 68% from the same week last year. The average rate on a 30-year fixed mortgage sat at 5.93% yesterday, after topping 6% the previous business day, its highest level since at least 2019, according to data collected by The Balance.
Higher rates are also taking a swing at existing home sale numbers, which fell 2.7% in March from the month prior and 4.5% from one year ago, according to the National Association of Realtors. The number of homes that were sold in March dropped to a seasonally adjusted annual rate of 5.77 million from the month prior, as higher prices and borrowing costs throw cold water on the hot housing market. While inventories jumped 11.8% from February, they remained relatively low, down 9.5% from last year, keeping home prices high. The median sales price for existing homes rose to $375,300, 15% higher than a year ago.
Stocks are mixed ahead of details on the U.S. economy from the Federal Reserve. The Fed is set to release its "Beige Book" later today, a report and survey on the current economic conditions in the country. The Beige Book is published eight times each year, but with inflation soaring and interest rates rising, investors and economists alike will be particularly interested in the impact these economic pressures have had on businesses and consumers thus far in 2022.
And if you missed yesterday's Instagram Live conversation with finance coach, speaker, and author Kara Stevens, you can watch the recording here to learn about building generational wealth, investing, and more. The conversation was part of The Balance's Financial Literacy Month Instagram Live series, which continues next week on Tuesday, April 26, at 12 noon Eastern, when I talk with Vivian Tu from YourRichBFF. Follow The Balance on Instagram to get updates on all of our live events this month!
- Kristin
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