Despite the sharp rise in the 10-year yield and corresponding increase in mortgage rates above 6.64%, the housing market is displaying resilience. This year's purchase application data indicates a 9% week-over-week and a 10% year-over-year rise, contrasting with last year's decline when rates approached 7.50%. Although a potential decline in purchase applications is anticipated due to recent rate hikes, a drop in mortgage rates towards 6% could stimulate significant growth in existing home sales for 2025, given the historically low baseline.
Despite rising mortgage rates above 6.64%, purchase applications show significant week-over-week growth of 9% and year-over-year growth of 10%.
Last year saw a negative trend with 14 weeks of falling purchase applications as rates climbed towards 7.50%, contrasting sharply with the current year.
If mortgage rates can drop towards 6%, it is predicted to significantly boost existing home sales growth in 2025.
The housing market continues to show resilience with positive year-over-year growth in pending home sales, despite fluctuations in mortgage rates.
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